enGene Holdings inks $100M share sale deal with Jefferies

enGene Holdings Inc. (NASDAQ:ENGN), a $304 million market cap biotech firm whose shares have declined 35% year-to-date, has entered into a sales agreement with Jefferies LLC, enabling the company to periodically sell up to $100 million of its common shares.

This arrangement, disclosed today, allows enGene to execute sales "at the market" through Jefferies, adhering to legal and market regulations. According to InvestingPro analysis, the company currently trades near its Fair Value.

The Sale Agreement, dated today, specifies that Jefferies will endeavor to sell the shares as directed by enGene, including adherence to any price, time, or size limits. enGene agreed to pay Jefferies a commission of up to 3% of the gross proceeds from each sale. The company maintains a strong liquidity position with a current ratio of 19.5, and InvestingPro rates its overall financial health as 'FAIR'.

This financial maneuver is part of a broader strategy to bolster enGene's capital. The company, however, emphasized that no shares would be offered or sold in Canada or to Canadian residents.

The shares will be offered under a previously filed registration statement and a prospectus supplement, both dated today. While enGene is not obligated to sell any shares, the agreement with Jefferies remains in effect until either party decides to terminate it.

The company's legal counsel, Blake, Cassels & Graydon LLP, provided a legal opinion on the shares, which is included in the SEC filing. This filing does not serve as an offer to sell or a solicitation of an offer to buy any shares; such actions would be unlawful without appropriate registration or qualification under relevant securities laws.

This news is based on a press release statement and the details provided in a recent SEC filing by enGene Holdings Inc.

In other recent news, Engene Holdings Inc. has made significant strides in its operations. JMP Securities recently gave the company's stock a Market Outperform rating, based on the anticipated increase in demand for its non-viral bladder cancer therapy, detailmogene.

The firm highlighted detailmogene's potential advantages, including its simple regimen and low site requirements. Engene has also secured $60 million in a private placement sale of common shares, which will support the development of detailmogene.

The company recently appointed Joan Connolly as Chief Technology Officer (CTO) and is preparing to submit a Biologics License Application in mid-2026. Analyst firms such as Leerink Partners, Oppenheimer, and Morgan Stanley (NYSE:MS) have maintained 'Outperform' ratings for Engene, with varying price targets.

The company's LEGEND study for detalimogene reported promising complete response rates over various timeframes, and additional cohorts are expected to be enrolled in late 2024.

Another therapy for bladder cancer, EG-70, is currently in clinical trials. Oppenheimer maintained its 'Outperform' rating for Engene, citing potential due to EG-70's non-viral gene therapy nature and convenience of use.

The company's financial position is robust following a $200 million private investment, with projected sales reaching approximately $530 million by 2031 after an expected product launch in 2027. These are some of the recent developments in the company.

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