Gossamer Bio Agrees to Up to $250 Million Private Placement; Shares Rise Pre-Bell

MT Newswires Live08-21 20:34

Gossamer Bio (GOSS) shares were up 10% in Friday's premarket trading after the company said it has agreed to sell up to $250 million in securities in a private placement to EcoR1 Capital, 683 Capital Partners, RA Capital Management and other new and existing investors.

The company said that the placement consists of an initial closing of $25 million at a purchase price of $0.1399 per pre-funded warrant, which can be exercised at $0.0001 apiece.

It said that a committed second closing of $125 million is contingent upon the Food and Drug Administration accepting its new drug application for seralutinib as a treatment for pulmonary arterial hypertension in 2026.

The offering also includes warrants that could provide up to $100 million in additional gross proceeds if they are exercised following FDA approval, Gossamer said.

Gossamer said net proceeds, along with existing resources, will be used to advance its seralutinib drug and fund its operations into 2028.

The initial closing is expected to occur on or about Aug. 24, the company said.

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