RARE Daily

Sangamo Therapeutics Announces Pricing of $24 Million Registered Direct Offering

March 22, 2024

Rare Daily Staff

Genomic medicine biotech Sangamo Therapeutics said it has entered into a securities purchase agreement with institutional investors to raise $24 million in gross proceeds before deducting fees and offering expenses.

The agreement provides for the purchase and sale of an aggregate of 24.8 million shares of its common stock and pre-funded warrants to purchase up to an aggregate of 3.8 million shares of common stock, together with accompanying warrants to purchase up to an aggregate of 28,571,428 shares of common stock. The combined offering price of each share of common stock and accompanying warrant is $0.84, priced at-the-market under Nasdaq rules. The combined offering price of each pre-funded warrant and accompanying warrant is $0.83. The warrants will become exercisable six months from issuance, expire five and a half years from the issuance date and have an exercise price of $1.00 per share.

Sangamo anticipates using the net proceeds from the offering to fund the development of neurology-focused genomic medicines pipeline, novel AAV capsid delivery technology and other general corporate purposes.

In November 2023, Sangamo announced a broad restructuring to conserve cash and extend its runway that included closing a facility in Brisbane, California and reducing its U.S. workforce by 40 percent, or 162 positions. The measure was expected to extend its cash runway into the third quarter of 2024.

Sangamo has been simplifying its organization and focusing on its epigenetic regulation therapies treating neurological diseases and its novel AAV capsid delivery technologies, deferring new investments in its Fabry and CAR-Treg programs beyond current commitments and actively seeking collaboration partners or direct investors in both.

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