Clinical-stage biotech company Tango Therapeutics (NASDAQ: TNGX) is set to privately issue around 15.5 million shares of common stock or pre-funded warrants to accredited healthcare specialist investors through a private investment in public equity (PIPE) financing. Priced at $5.15 per share, the financing is led by Nextech and involves current investors like Boxer Capital, Bain Capital Life Sciences, and Casdin Capital. The private placement, expected to finalize on August 11, 2023, should yield approximately $80 million in gross proceeds to accelerate Tango’s precision cancer medicine development across diverse tumor types.
Tango Therapeutics, Inc. (NASDAQ: TNGX), a clinical-stage biotechnology company committed to discovering and delivering the next generation of precision cancer medicines, has agreed to sell approximately 15.5 million shares of its common stock (“Common Stock”) (or pre-funded warrants (“Pre-Funded Warrants”) in lieu thereof) to a select group of institutional and accredited healthcare specialist investors in a private investment in public equity (PIPE) financing, at a per share price of $5.15. The Pre-Funded Warrants will have an exercise price of $0.0001 per share of common stock, will be immediately exercisable and will remain exercisable until exercised in full. The financing is expected to close on Friday, August 11, 2023, subject to customary closing conditions. Gross proceeds from the private placement are anticipated to be approximately $80 million, before deducting any offering-related expenses.
The financing was led by Nextech with participation from Boxer Capital, Bain Capital Life Sciences, Casdin Capital, EcoR1 Capital, Southpoint Capital, Third Rock Ventures and a large institutional investor.
“We are proud to have Nextech as a new investor, and to receive additional support from an outstanding group of current investors to further our mission to develop novel precision oncology treatments. This financing underscores the confidence in our near-term clinical programs, and our state-of-the-art target platform to discover and develop new drugs for people with cancer,” said Barbara Weber, M.D., President and Chief Executive Officer of Tango Therapeutics. “The additional funding strengthens our balance sheet at a time of strong momentum. Our two PRMT5 inhibitors are currently in dose escalation, and we recently demonstrated proof-of-mechanism for our lead program, TNG908. In addition, we have initiated the phase 1/2 clinical trial for TNG260, in combination with pembrolizumab in patients with checkpoint inhibitor resistant STK11-mutant cancers, and plan to initiate a fourth clinical trial in 2024.”
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“Becoming an investor in Tango Therapeutics is consistent with Nextech’s core investment strategy. Tango is a leader in developing novel precision oncology programs based on synthetic lethality – all of which have the potential to address significant patient populations across multiple cancer types,” said Kanishka Pothula, Partner at Nextech. “We look forward to working closely with the exceptional team at Tango as these potentially transformative treatments evolve.”
Proceeds from the financing are expected to enable rapid expansion across multiple tumor types for the TNG908 and TNG462 PRMT5 programs, as well as maintain funding through proof-of-concept for each of its clinical-stage programs as the Company awaits clinical data. Current cash, cash equivalents and marketable securities, in addition to proceeds from the financing, is expected to be sufficient to fund operations into 2026.
The securities sold in this PIPE, including the shares of common stock underlying the Pre-Funded Warrants, are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Pursuant to the securities purchase agreement, the Company has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the securities sold in the PIPE.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. Any offering of the Common Stock or Pre-Funded Warrants described above under the resale registration statement will only be by means of a prospectus.
Source: BioSpace