In the Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) public offering, common shares totalling 22,300,000 will be offered at $6.75 a share. The biopharmaceutical firm expects to raise a total of $150.5 million from the public offering prior to deductions such as commissions, underwriting discounts and other expenses. Aurinia filed its intent with the U.S. Securities and Exchange Commission in late 2015 through an F-10 registration statement. March 20, 2017, will be the closing date for the offering as long as customary closing conditions are met.
Exchange approvals
The customary closing conditions include getting approvals from TSX and NASDAQ. In order to get approval from TSX, Aurinia will be relying on a rule in the exchange’s company manual which states that the exchange will exempt a transaction from being subject to TSX’s standards if the issuer is also listed on another recognised exchange, which in this case is NASDAQ.
Being a company that has its headquarters in Canada, specifically Victoria in British Columbia, a prospectus for the offering has been made available with various securities commissions in such Canadian provinces as Ontario, Alberta and British Columbia. The same has been made available to the U.S. Securities and Exchange Commission. The offering’s joint book-running managers will be Cantor Fitzgerald & Co and Leerink Partners LLC. Up to 3,345,000 extra shares will be available to the underwriters for purchase for about a month.
Offering documents
Interested investors can obtain offering documents from the website of the company or from the website of the U.S. Securities and Exchange Commission. The offering documents are also available from the offices of the joint book-running managers. Offering documents can also be obtained from the joint book-running managers via email.
A portion of the proceeds from the offering will be invested in research and development while the rest will be used as working capital. Currently, the biopharmaceutical company is engaged in the third phase of a testing a treatment for lupus nephritis. The name of the drug is voclosporin.
In Tuesday’s trading session, shares of Aurinia Pharmaceuticals Inc fell sharply by 25.05% to close the day at $7.09 a share.
