Reneo Pharmaceuticals, Inc. (Reneo) (Nasdaq: RPHM), a
clinical-stage pharmaceutical company focused on the development
and commercialization of therapies for patients with rare genetic
mitochondrial diseases, today announced the pricing of its
previously announced underwritten public offering of 6,875,000
shares of its common stock at a public offering price of $8.00 per
share for aggregate gross proceeds of approximately $55.0 million,
before deducting underwriting discounts and commissions and
offering expenses. In addition, Reneo has granted the underwriters
a 30-day option to purchase up to an additional 1,031,250 shares of
its common stock at the public offering price, less the
underwriting discounts and commissions. The offering is expected to
close on or about May 8, 2023, subject to satisfaction of customary
closing conditions.
In addition to the shares of common stock being sold in the
public offering, Reneo also entered into a securities purchase
agreement with Abingworth Bioventures 8 LP (Abingworth), pursuant
to which Abingworth agreed to purchase Reneo’s shares of common
stock at the public offering price, for aggregate gross proceeds of
up to approximately $5.0 million, in a concurrent private
placement. The sale of these shares of common stock will not be
registered under the Securities Act of 1933, as amended. The
concurrent private placement is expected to close after the closing
of the public offering. The closing of the concurrent private
placement is conditioned on the closing of the public offering.
Jefferies LLC, BofA Securities, Inc. and Piper Sandler are
acting as joint book-running managers and Robert W. Baird & Co.
Incorporated as a lead manager for the underwritten public
offering. Jefferies LLC, BofA Securities, Inc., Piper Sandler and
Robert W. Baird & Co. Incorporated are also acting as placement
agents for the concurrent private placement.
A registration statement relating to these securities has been
filed with the U.S. Securities and Exchange Commission (the “SEC”)
on Form S-3 (File No. 333-264616) and declared effective on May 9,
2022. The public offering will be made only by means of a
prospectus supplement. Copies of the final prospectus supplement
and the accompanying prospectus related to the public offering may
be obtained, when available, from: Jefferies LLC, Attention: Equity
Syndicate Prospectus Department, 520 Madison Avenue, New York, NY
10022, or by telephone at (877) 821-7388, or by e-mail at
prospectus_department@jefferies.com; BofA Securities NC1-022-02-25,
201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus
Department, E-mail: dg.prospectus_requests@bofa.com; or Piper
Sandler & Co., Attention: by mail at 800 Nicollet Mall, J12S03,
Minneapolis, MN 55402, Attn: Prospectus Department, by telephone at
(800) 747-3924, or by e-mail at prospectus@psc.com.
This press release does not constitute an offer to sell, or a
solicitation of an offer to buy these securities, 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
registration or qualification under the securities laws of any such
state or jurisdiction.
The shares of common stock offered in the concurrent private
placement have not been registered under the Securities Act of
1933, as amended, and may not be offered or sold in the United
States except pursuant to an effective registration statement or an
applicable exemption from the registration requirements.
About Reneo Pharmaceuticals
Reneo is a clinical-stage pharmaceutical company focused on the
development and commercialization of therapies for patients with
rare genetic mitochondrial diseases, which are often associated
with the inability of mitochondria to produce adenosine
triphosphate. Our lead product candidate, mavodelpar, is a potent
and selective agonist of the peroxisome proliferator-activated
receptor delta. Mavodelpar has been shown to increase transcription
of genes involved in mitochondrial function and increase fatty acid
oxidation, and may increase production of new mitochondria.
Forward-Looking Statements
Forward-looking statements are statements that are not
historical facts. Words and phrases such as “anticipated,”
“forward,” “will,” “would,” “may,” “remain,” “potential,”
“prepare,” “expected,” “believe,” “plan,” “near future,” “belief,”
“guidance,” and similar expressions are intended to identify
forward-looking statements. These statements include, but are not
limited to, whether Reneo will offer the shares of common stock or
consummate the offering and the concurrent private placement, the
timing, size and expectation of closing of the public offering and
the concurrent private placement described herein, and its
expectations with respect to granting the underwriters a 30-day
option to purchase additional ordinary shares. All of such
statements are subject to risks and uncertainties, and assumptions,
including those that are described in the Risk Factor sections of
the prospectus supplement for such offering filed with the U.S.
Securities and Exchange Commission (the “SEC”), and the documents
incorporated by reference therein, including without limitation
those risks and uncertainties identified in the “Risk Factors”
section of Reneo’s Registration Statement on Form S-3 declared
effective by the SEC on May 9, 2022, the accompanying prospectus,
Reneo’s Annual Report on Form 10-K filed with the SEC on March 27,
2023, and other filings that Reneo makes with the SEC from time to
time. All forward-looking statements contained in this press
release speak only as of the date on which they were made. Except
to the extent required by law, Reneo undertakes no obligation to
update such statements to reflect events that occur or
circumstances that exist after the date on which they were
made.
Contacts:
Danielle Spangler Investor Relations Reneo
Pharmaceuticals, Inc. dspangler@reneopharma.com
David Melamed, Ph.D. Media Inquiries Russo Partners,
LLC david.melamed@russopartnersllc.com
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