On April 6, 2021, Homology Medicines, Inc. (the “Company”) entered into an underwriting agreement (the “Underwriting Agreement”) with BTIG, LLC as underwriter (the “Underwriter”), in connection with the public offering, issuance and sale by the Company of 6,596,306 shares of the Company’s common stock, $0.0001 par value per share, pursuant to an effective shelf registration statement on Form S-3 (Registration No. 333-237131), as amended, and a related prospectus supplement filed with the Securities and Exchange Commission. The Underwriter agreed to purchase the shares of common stock pursuant to the Underwriting Agreement at a price of $7.58 per share. Under the terms of the Underwriting Agreement, the Company also granted the Underwriter an option exercisable for 30 days to purchase up to an additional 989,445 shares of its common stock at a price of $7.58 per share. The closing of the offering occurred on April 9, 2021.
The proceeds from the offering were approximately $50.0 million, before deducting estimated offering expenses payable by the Company. The Company intends to use the net proceeds of the offering, in addition to its existing cash resources, to: continue to advance its lead gene therapy candidate, HMI-102, for the treatment of phenylketonuria, or PKU, in adults through the ongoing Phase 2 pheNIX clinical trial; advance HMI-203, its gene therapy candidate for the treatment of Hunter syndrome, and HMI-103, its first gene editing candidate, which is for the treatment of PKU in the pediatric population, through IND-enabling studies and into clinical trials; advance its other pipeline programs through preclinical development; further expand its intellectual property portfolio; potentially further expand its manufacturing capacity; and for working capital and general corporate and administrative expenses.
The Underwriting Agreement contains customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the Underwriter, including for liabilities under the Securities Act of 1933, as amended, other obligations of the parties and termination provisions.
The foregoing description of the Underwriting Agreement is not complete and is qualified in its entirety by reference to the full text of the Underwriting Agreement, a copy of which is filed as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated by reference herein.
Latham & Watkins LLP, counsel to the Company, has issued an opinion to the Company, dated April 9, 2021, regarding the validity of the shares of common stock to be issued and sold in the offering. A copy of the opinion is filed as Exhibit 5.1 to this Current Report on Form 8-K.