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DURHAM, N.C. - Precision BioSciences, Inc. (NASDAQ:DTIL) announced Monday it has agreed to sell 10,815,000 shares of common stock and warrants in an underwritten offering expected to raise approximately $75 million in gross proceeds. The offering represents a significant capital injection for the clinical-stage gene editing company, which currently has a market capitalization of approximately $80 million according to InvestingPro data.
The clinical-stage gene editing company is offering the common stock and accompanying warrants to purchase up to 5,407,500 shares at a combined price of $6.14 per unit. For certain investors, the company is offering pre-funded warrants to purchase up to 1,400,000 shares with accompanying warrants at a combined price of $6.139995. The offering comes after DTIL shares experienced a steep 17.5% decline over the past week, though the stock has shown resilience with a 59.3% gain year-to-date.
Each whole warrant has an exercise price of $7.25 per share, is exercisable immediately, and will expire five years after issuance. The offering includes participation from both new and existing investors, including Aberdeen Investments, Bleichroeder LP, Driehaus Capital Management, and several other life sciences investors.
Precision BioSciences intends to use the net proceeds to fund ongoing and planned research and development, as well as for working capital and general corporate purposes. The company utilizes its proprietary ARCUS platform to develop in vivo gene editing therapies. InvestingPro data reveals the company is quickly burning through cash, with an EBITDA of -$87.9 million in the last twelve months. Despite this, DTIL maintains a healthy current ratio of 3.45, indicating its liquid assets exceed short-term obligations.
Guggenheim Securities is acting as the sole book-running manager for the offering, which is expected to close on or about November 12, 2025, subject to customary closing conditions.
The securities are being offered through a prospectus supplement dated November 10, 2025, and an accompanying prospectus dated June 15, 2023, which form part of the company's effective shelf registration statement.
According to the press release statement, Precision BioSciences focuses on developing treatments for genetic and infectious diseases where no adequate treatments currently exist. Analysts tracked by InvestingPro do not anticipate profitability this year, with a projected EPS of -$6.83 for fiscal year 2025. The company's overall financial health score is rated as WEAK, reflecting ongoing challenges typical of clinical-stage biotech companies.
In other recent news, Precision BioSciences presented promising data from its Phase 1 ELIMINATE-B study on PBGENE-HBV, a gene editing therapy targeting chronic Hepatitis B. The therapy demonstrated dose-dependent antiviral activity and was well-tolerated across different patient cohorts. Additionally, Precision BioSciences announced the publication of research in the journal Nucleic Acids Research, showcasing the capabilities of its ARCUS gene editing platform, which achieved high-efficiency gene insertions and various DNA edits. The company also secured a U.S. patent for its PBGENE-HBV gene editing therapy, extending protection until March 2042, following similar patents in Europe and Hong Kong. Furthermore, Precision BioSciences updated executive contracts with new severance terms for its key officers, reflecting current salaries and bonuses. These developments highlight Precision BioSciences' ongoing advancements in gene editing technology and corporate governance.
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