Tenaya Therapeutics announces securities offering

Published 03/03/2025, 22:18
Tenaya Therapeutics announces securities offering

SOUTH SAN FRANCISCO, Calif. - Tenaya Therapeutics , Inc. (NASDAQ:TNYA), a biotech firm focused on developing treatments for heart disease, disclosed plans for a public offering of common stock and warrants. The announcement comes as the company’s stock trades near $0.95, having declined over 84% in the past year. According to InvestingPro data, while the company maintains a strong liquidity position with more cash than debt, it’s currently experiencing rapid cash burn. The company will offer common stock combined with Series A and Series B warrants, as well as pre-funded warrants at $0.001 per share for certain investors, accompanied by the same series of warrants.

The pre-funded warrants will be immediately exercisable and have no expiration date. Tenaya will be the sole seller of the securities in this offering, which is contingent on market conditions and other factors. There is no guarantee of the offering’s completion, size, or terms. The offering comes at a crucial time, as InvestingPro analysis shows the company maintaining a healthy current ratio of 5.27, indicating strong short-term liquidity despite challenging market conditions.

Leerink Partners and Piper Sandler are serving as joint bookrunning managers for the offering. The sale is being conducted under a previously SEC-approved Registration Statement on Form S-3. A preliminary prospectus supplement detailing the offering terms will be filed with the SEC.

Tenaya’s mission encompasses the discovery, development, and delivery of therapies targeting the root causes of heart disease. Their pipeline features several gene therapies, including TN-201 for MYBPC3-associated hypertrophic cardiomyopathy (HCM) and TN-401 for PKP2-associated arrhythmogenic right ventricular cardiomyopathy (ARVC), as well as a small molecule inhibitor, TN-301, for heart failure with preserved ejection fraction (HFpEF).

The announcement contains forward-looking statements, which are subject to various risks and uncertainties. These include the company’s ability to raise capital, finalize the offering terms, and apply the proceeds as anticipated. Market conditions and other risks could also affect the outcome.

For more information on the risks and uncertainties that could cause actual results to differ, interested parties can refer to Tenaya’s recent filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q filed on November 6, 2024, and the upcoming prospectus supplement related to the proposed offering. Despite current challenges, analysts maintain optimism, with price targets ranging from $6 to $40 per share. Investors seeking deeper insights into Tenaya’s financial health and growth prospects can access additional analysis and 13 more exclusive ProTips through InvestingPro.

This news is based on a press release statement from Tenaya Therapeutics, Inc.

In other recent news, Tenaya Therapeutics announced significant developments, including the repricing of stock options for CEO Faraz Ali and other employees. The repricing, approved by the company’s Board of Directors, aims to retain and motivate key personnel by adjusting the exercise price of underwater options to $1.21 per share. This move affects approximately 4.1 million shares, originally priced between $3.06 and $21.01, and is contingent on retention goals or a change in control. Additionally, Tenaya received an $8 million grant from the California Institute of Regenerative Medicine to support its ongoing Phase 1b RIDGE-1 study of TN-401 gene therapy, which targets PKP2-associated arrhythmogenic right ventricular cardiomyopathy.

H.C. Wainwright has maintained a Buy rating on Tenaya Therapeutics, with an $18.00 price target, following the release of initial data from the MyPeak-1 study evaluating TN-401 for hypertrophic cardiomyopathy. The study showed no cardiac adverse events and consistent safety profiles with other AAV-based gene therapies. Furthermore, Tenaya appointed Mr. Tomohiro Higa as the Interim Principal Accounting Officer while continuing his role as Senior Vice President, Finance. These recent developments underscore Tenaya’s ongoing efforts in advancing its gene therapy programs and strategic goals for 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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