SoFi stock falls after announcing $1.5B public offering of common stock
Tango Therapeutics, Inc. (NASDAQ:TNGX) announced Friday it has entered into a new sales agreement with Leerink Partners LLC, allowing the company to sell up to $100 million of its common stock through an at-the-market (ATM) offering. The agreement enables Tango Therapeutics to offer shares from time to time, at its discretion, using Leerink Partners as its sales agent. The clinical-stage oncology company, currently valued at approximately $1.2 billion, has seen its shares surge nearly 371% over the past six months, according to InvestingPro data.
Under the terms of the agreement, any shares sold will be issued either through ATM offerings as defined by SEC rules or through negotiated transactions, if authorized by the company. Tango Therapeutics will pay Leerink Partners a commission of up to 3.0% of the gross sales price per share of stock sold under the agreement. The company also agreed to provide the agent with customary indemnification rights. InvestingPro data shows Tango maintains a strong liquidity position with a current ratio of 8.88, and holds more cash than debt on its balance sheet, potentially explaining the company’s flexibility in establishing this new offering.
The company filed the related prospectus supplement with the Securities and Exchange Commission on Friday. There is no assurance that Tango Therapeutics will issue any shares under the new agreement.
In connection with this new arrangement, Tango Therapeutics also announced the termination of its previous at-the-market program with Jefferies LLC. The company had entered into that agreement in September 2022, which also allowed for the sale of up to $100 million in common stock. On Tuesday, Tango Therapeutics delivered written notice to Jefferies to terminate the agreement, effective Friday. There are no termination penalties associated with ending the previous agreement, and the company will not offer or sell any further shares under the 2022 program.
The information in this article is based on a statement in a press release filed with the Securities and Exchange Commission.
In other recent news, Tango Therapeutics has been in the spotlight following the release of its Phase 1/2 trial data for the cancer drug vopimetostat. The data, which showed a 27% overall response rate across 94 efficacy-evaluable patients, drew positive attention, particularly for its strong results in pancreatic cancer patients and other solid tumors with MTAP deletions. In light of these findings, Cantor Fitzgerald reiterated an Overweight rating, while Guggenheim raised its price target for Tango Therapeutics to $12.00 from $10.00, maintaining a Buy rating. Additionally, the company announced a $210 million underwritten offering of common stock and pre-funded warrants, pricing the offering at $8.66 per share. This move is expected to generate substantial gross proceeds before underwriting discounts and commissions. The trial data also highlighted a median progression-free survival of 7.2 months and an objective response rate of 25% in second-line MTAP-deleted pancreatic cancer patients, which is notably higher than historical control studies. These developments have garnered significant attention from investors and analysts alike.
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