Soleno Therapeutics Inc. has announced that it has priced an underwritten public offering of 3 million shares of its common stock at $46.00 per share. Despite closing in regular trading at $49.23, up $1.69 or 3.55%, the stock dipped by $3.23 or 6.56% after hours.
The company expects the gross revenue from this public offering to reach roughly $138.0 million, prior to accounting for underwriting discounts, commissions, and other anticipated offering costs. The underwriters have also been granted a 30-day option by Soleno to purchase up to an additional 450,000 shares of common stock at the public offering price, once underwriting discounts and commissions are accounted for.
The public offering is projected to close around May 7, 2024. Soleno pointed out that its plan is to use the net proceeds from the offering to fund its current research and development efforts, focusing principally on the advancement of its leading candidate, DCCR tablets for the treatment of Prader-Willi Syndrome, as well as providing for general corporate needs.