Synergy Pharmaceuticals Inc (NASDAQ:SGYP) has revealed that the price of its common stock will be $6.15 a share. This is before deductions have been made for commissions, discounts and other expenses incurred in the course of the issuance. In the public offering, there will be 20,325,204 shares made available. The offering will close on February 6, 2017.
Commercialization and further clinical development of lead product
The proceeds of the offering will be used to finance the commercialization efforts of Trulance, a drug used in the treatment of constipation in adults which was recently approved by the U.S. Food and Drug Administration. Synergy Pharmaceuticals has 100 percent control of the worldwide rights to this drug. Additionally, the proceeds of the offering will be used to fund Trulance’s further clinical development as well as for working capital and other business purposes. Net proceeds from the offering may also be used to fund technologies, products or acquisitions. However, there is no acquisition being contemplated in the interim.
As a biopharmaceutical firm that concentrates on developing and commercializing gastrointestinal therapies, there will also be a second lead product candidate that will require resources allocated to its development. This is the dolcanatide drug.
H.C. Wainwright & Co., LLC has been appointed the offering’s co-manager while the joint book-running managers are Cantor Fitzgerald & Co. and Canaccord Genuity Inc.
Regulator has already declared it effective
The filing of a shelf registration statement with the U.S. Securities and Exchange Commission was done on July 2, 2015, and the markets regulator declared it effective on July 14, 2015. Only by means of a written prospectus may the securities be offered and a prospectus supplement will form a part of the registration statement. Already, the filing with the SEC of an accompanying prospectus and a preliminary prospectus supplement will be done soon. Once the documents are available they will be obtainable from the joint book-running managers either by physically visiting their offices or through contacting them by email.
In Wednesday’s trading session, Synergy Pharmaceuticals Inc edged downwards sharply by 14.57 percent to close the day at $6.04 a share.
