Shares of MoonLake Immunotherapeutics (NASDAQ:MLTX) fell 2.8% in after-hours trading Monday following the company's announcement of a proposed public offering of $150 million in Class A ordinary shares.
Alongside the planned share sale, MoonLake said it would make pre-funded warrants available to certain investors as an alternative to receiving Class A ordinary shares. The company also informed investors that it expects to grant the underwriting syndicate a 30-day option to purchase up to an additional $22.5 million of Class A ordinary shares at the public offering price, less underwriting discounts and commissions.
Use of proceeds and corporate intent
MoonLake stated that it intends to use net proceeds from the offering, together with its existing cash, cash equivalents and marketable securities, to support research and development work, pre-commercialization activities and commercialization activities related to sonelokimab, if the therapy receives approval. The company also cited general corporate purposes as part of its planned use of funds.
Underscoring uncertainty
The company made clear the proposed offering is subject to market and other conditions and explicitly warned there is no assurance the offering will be completed or that the actual size or final terms will reflect the initial proposal.
Bookrunners and company profile
Leerink Partners, Guggenheim Securities, Cantor and LifeSci Capital are serving as joint bookrunning managers for the offering.
MoonLake is a clinical-stage biopharmaceutical firm focused on developing sonelokimab, an investigational therapy targeting several inflammatory diseases, including hidradenitis suppurativa, psoriatic arthritis, axial spondyloarthritis and palmoplantar pustulosis. The company is based in Zug, Switzerland.
The announcement and proposed financing followed the company into after-hours trading, with the stock reflecting investor reaction to the dilution and financing plan.
Data limitations
Details on the offering's pricing, final timing and specific allocation of proceeds were not provided beyond the statements noted above. The company emphasized the conditional nature of the proposal and that outcomes could change depending on market and other factors.