Following the announcement of an equity initiative, shares of Bicycle Therapeutics plc (NASDAQ: BCYC) are experiencing a notable increase. As of the last check this current session, BCYC stock has risen by 17.88%, reaching $25.25.
Securities Purchase Agreement And Financing Details
Bicycle Therapeutics (BCYC) announced that it has signed a share purchase agreement with a number of existing and new approved investors to issue and sell 25,933,706 American Depositary Shares (ADSs).
Alternatively, investors may elect to exchange their ADSs for $21.42 per share of ordinary shares devoid of voting rights through a private investment. The financing move was made through a private investment in public equity (PIPE) transaction and is anticipated to be closed by May 28, 2024, barring unforeseen circumstances. The business expects gross proceeds from this PIPE financing of around $555 million.
Strategic Use Of Proceeds And Investor Confidence
The financing round was led by a prominent U.S.-based healthcare-focused investor and saw participation from Deep Track Capital, EcoR1 Capital, Fairmount, Forbion, Perceptive Advisors, and RA Capital Management. The net proceeds will be used by Bicycle Therapeutics to support continuing research and development initiatives, further build its proprietary pipeline, and take care of basic company needs.
This funding round demonstrates the increasing faith that investors have in the Bicycle platform’s and its team’s ability to develop precision-guided treatments. These advancements hold enormous potential for significantly raising patients’ quality of life in comparison to existing therapy.
The funds so generated will support various high-value initiatives and early-stage research projects that BCYC plans to pursue and which are expected to reach several important milestones in the second half of 2024. Bicycle Therapeutics is aiming developing innovative drugs that will improve and extend the lives of patients with cancer and other serious diseases.
Financial Impact Of The Strategy
Post-financing, Bicycle Therapeutics projects its pro forma cash and cash equivalents to approximate $1.0 billion as of May 23, 2024. This estimate is preliminary and based on the current information available to management, and it may be subject to change.
