On September 3, 2024 Atara Biotherapeutics, Inc. (Nasdaq: ATRA), a leader in T-cell immunotherapy, leveraging its novel allogeneic Epstein-Barr virus (EBV) T-cell platform to develop transformative therapies for patients with cancer and autoimmune diseases, reported that it has entered into definitive agreements for the issuance and sale of 758,900 shares of its common stock at a purchase price of $8.25 per share and the issuance and sale of pre-funded warrants to purchase up to 3,604,780 shares of its common stock at a purchase price of $8.2499 per share in a registered direct offering, representing a premium of 15% to Atara’s 7-day volume-weighted average price, to entities affiliated with Redmile Group, EcoR1 Capital, and Adiumentum Capital Management, as well as a strategic investment from a large public biotechnology company (Press release, Atara Biotherapeutics, SEP 3, 2024, View Source [SID1234646281]). The pre-funded warrants will have an exercise price of $0.0001 per share and will be immediately exercisable upon issuance. The offering is expected to close on or about September 5, 2024, subject to the satisfaction of customary closing conditions.
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In connection with the offering, Greg Ciongoli, founder and managing partner of Adiumentum Capital Management, will join Atara’s Board of Directors.
"Atara’s innovative cell therapies, like tab-cel and its differentiated allogeneic CAR-T portfolio, have the potential to transform the lives of cancer and autoimmune patients," said Greg Ciongoli. "With the prospective U.S. approval for tab-cel and several anticipated CAR-T data readouts all approaching, this is an exciting time to join Atara’s Board and to partner with its strong leadership team."
"We are very pleased to have Greg join our Board, and I look forward to collaborating with him as I transition to Chairman," said Pascal Touchon, President and Chief Executive Officer. "He has over two decades of investing experience and deep industry knowledge, which will complement our Board of Directors well."
The gross proceeds to Atara from the offering are expected to be $36 million, before deducting estimated offering expenses payable by Atara. Atara currently intends to use the net proceeds from the offering for working capital and general corporate purposes.
The securities described above are being offered by Atara pursuant to a shelf registration statement on Form S-3 (No. 333-275256), including a base prospectus, that was previously filed by Atara with the U.S. Securities and Exchange Commission (the "SEC") and was declared effective on November 13, 2023. A prospectus supplement containing additional information relating to the offering will be filed with the SEC and will be available on the SEC’s website located at View Source
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.