X4 Pharmaceuticals announces $145.6 million public offering of common stock

X4 Pharmaceuticals, Inc. (NASDAQ:XFOR) announced Monday that it entered into an underwriting agreement with Leerink Partners LLC, Stifel, Nicolaus & Company, Incorporated, and Guggenheim Securities, LLC to issue and sell 45,860,000 shares of its common stock at a public offering price of $2.90 per share. In addition, the company will issue pre-funded warrants to purchase 700,000 shares of common stock to certain investors at a public offering price of $2.899 per warrant.

The underwriters were granted a 30-day option to purchase up to an additional 6,984,000 shares of common stock at the public offering price, less underwriting discounts and commissions. According to a statement in the SEC filing, the underwriters exercised this option in full on Friday.

X4 Pharmaceuticals expects net proceeds from the offering to be approximately $145.6 million after deducting underwriting discounts, commissions, and estimated offering expenses. The securities are being offered pursuant to a shelf registration statement that became effective on August 24, 2023, with a final prospectus supplement filed with the U.S. Securities and Exchange Commission on Friday. The offering is expected to close, subject to standard closing conditions, on Monday. According to InvestingPro analysis, the company maintains a healthy current ratio of 3.19, indicating strong short-term liquidity. Get access to 13 additional ProTips and comprehensive financial analysis with an InvestingPro subscription.

The pre-funded warrants are exercisable at any time after issuance, subject to certain beneficial ownership limitations. Holders may not exercise the warrants if it would result in beneficial ownership exceeding 4.99% or 9.99% of the company’s outstanding common stock, with the possibility to adjust this limit up to 19.99% after providing advance notice.

X4 Pharmaceuticals agreed to indemnify the underwriters against certain liabilities, including those under the Securities Act of 1933, or to contribute to payments the underwriters may be required to make as a result of such liabilities.

This information is based on a press release statement included in the company’s recent SEC filing.

In other recent news, X4 Pharmaceuticals announced the pricing of its underwritten public offering, setting the price at $2.90 per share for 45,860,000 shares of common stock. This offering is expected to generate approximately $135 million in gross proceeds, which will be used to fund the development of its rare disease drug program, specifically the pivotal Phase 3 development of mavorixafor in chronic neutropenic disorders. In addition to this financial move, the company has undergone a strategic restructuring, reducing its workforce by 50% to save an estimated $13 million annually. Leadership changes accompany this restructuring, with John Volpone taking on the role of Chief Operating Officer while continuing as President. Furthermore, Stifel has lowered its price target for X4 Pharmaceuticals to $9 from $30, maintaining a Buy rating despite the company’s recent major leadership overhaul. Meanwhile, Altimmune has appointed Dr. Christophe Arbet-Engels as Chief Medical Officer to lead the clinical development of pemvidutide, including a planned Phase 3 trial. Dr. Arbet-Engels replaces Dr. Scott Harris, who will continue with the company as a Senior Strategic Advisor. These developments reflect significant shifts in both companies’ strategies and leadership.

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