Rallybio revises common stock offering to $9.55 million

In a strategic move, Rallybio Corporation (NASDAQ:RLYB), a biopharmaceutical company currently valued at $26.72 million, has amended its sales agreement with TD Securities (USA) LLC, reducing the potential sale of its common stock from $100 million to $9.55 million. The stock, trading at $0.66, has seen a significant decline of 31% year-to-date, according to InvestingPro data. This amendment, effective today, adjusts the company’s fundraising strategy under the existing sales agreement from August 8, 2022.

Rallybio, headquartered in New Haven, Connecticut, has granted TD Cowen the right to sell shares on its behalf, based on the company’s instructions. While TD Cowen is committed to making reasonable efforts to sell these shares, it will receive a commission of up to 3% of the gross proceeds from the sales. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 9.55, though it’s currently experiencing rapid cash burn.

The sales will be conducted as "at the market" offerings, meaning they will be executed at prevailing market prices on the Nasdaq Global Select Market or other trading markets for Rallybio’s common stock. Notably, the company retains the flexibility to suspend or terminate the offering at any time and has confirmed that no shares have been sold under the agreement as of the date of the report.

Rallybio’s ability to sell shares is subject to regulatory limitations, ensuring that the value of shares sold does not exceed one-third of the company’s public float within any twelve-month period, as long as the public float is below $75 million. The company has not sold any securities under this condition in the past twelve months.

This SEC filing-based report serves as an informational update and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The detailed terms of the amendment are outlined in the Exhibit 1.1 attached to Rallybio’s current report, which is incorporated herein by reference. For a comprehensive analysis of Rallybio’s financial health and market position, including 12 additional exclusive ProTips and detailed valuation metrics, visit InvestingPro, where you’ll find our in-depth Pro Research Report covering all essential aspects of this biotech investment opportunity.

In other recent news, Rallybio Corporation has initiated a Phase 2 clinical trial for its potential treatment RLYB212, aimed at preventing fetal and neonatal alloimmune thrombocytopenia (FNAIT). The trial will assess the pharmacokinetics and safety of the therapy in pregnant women at risk for HPA-1a alloimmunization. Initial data from the trial’s first participant are expected in the second quarter of 2025, with more comprehensive data anticipated by the third quarter of 2025. The study aims to enroll eight participants and is conducted across multiple sites in Europe.

In another development, Rallybio has received a notice from the Nasdaq Stock Market regarding a potential delisting. This notice was issued because the company’s stock has not met the minimum required closing bid price of $1.00 per share for 30 consecutive business days. Rallybio has 180 days to regain compliance by maintaining a closing bid price of at least $1.00 per share for 10 consecutive business days. The company is exploring options to address this issue, and if necessary, may apply for an additional grace period by transferring its stock listing to the Nasdaq Capital Market.

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