4D Molecular Therapeutics issues pre-funded warrant to RA Capital

Published 11/12/2024, 23:08
4D Molecular Therapeutics issues pre-funded warrant to RA Capital

4D Molecular Therapeutics, Inc., a biotechnology firm specializing in gene therapy products with a market capitalization of $320 million, has engaged in a securities exchange agreement with RA Capital Healthcare Fund, L.P. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet. The transaction, which took place on December 6, 2024, involved RA Capital exchanging 535,000 shares of the company's common stock for a pre-funded warrant to acquire an equivalent number of shares.

The pre-funded warrant, which has an exercise price of $0.0001 per share, is immediately exercisable and remains valid until fully exercised. It is subject to adjustment in cases of stock splits, dividends, and similar corporate events, as well as during distributions of assets to stockholders. A key feature of the warrant includes a beneficial ownership blocker, limiting the holder from acquiring a beneficial ownership exceeding 9.99% of the company's issued and outstanding common stock.

This strategic financial move was executed without registration under the Securities Act of 1933, as amended, by relying on the exemption provided in Section 3(a)(9) of the Act. The specific terms of the pre-funded warrant can be found in the form filed as Exhibit 4.1 in the company's SEC filing.

In other recent news, 4D Molecular Therapeutics has been making significant progress in its clinical trials for the treatment of wet age-related macular degeneration (AMD (NASDAQ:AMD)) with its gene therapy, 4D-150. Recent developments show promising results from Phase 1/2 PRISM trial data, indicating a reduction in treatment burden for wet AMD patients by 83% to 98% in annualized injection rates across various patient groups.

Analyst firms such as Morgan Stanley (NYSE:MS), BMO Capital Markets, Chardan Capital Markets, H.C. Wainwright, and Goldman Sachs have provided their assessments of the company's progress. Morgan Stanley initiated coverage with an Underweight rating and a price target of $8.00, while BMO Capital Markets sustained its positive stance with an Outperform rating and a $40.00 price target.

Chardan Capital Markets maintained a Buy rating and a $39.00 price target, H.C. Wainwright kept its Buy rating with a $36.00 price target, and Goldman Sachs reiterated its Buy rating with an $82.00 price target. These ratings reflect the firms' confidence in the continued development and future success of 4D-150.

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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