Atara Biotherapeutics, Inc. (Nasdaq: ATRA), a pioneer in T-cell immunotherapy, has announced a significant new phase of financing to boost its development of groundbreaking therapies for cancer and autoimmune diseases. Today’s trading saw a notable rise in Atara’s stock, which surged over 35%, indicating strong investor confidence following the announcement.
Strategic Financing Details
Atara has entered into definitive agreements for a registered direct offering, which will include the issuance and sale of 758,900 shares of its common stock at $8.25 per share. Additionally, the deal involves pre-funded warrants for up to 3,604,780 shares at a near-identical price, with an exercise price of just $0.0001 per share, reflecting a strategic move to secure long-term capital. These warrants are immediately exercisable upon issuance. This offering represents a 15% premium over Atara’s recent average stock price, underscoring the value investors place on its innovative approaches.
The entities participating in this financing round include notable investment firms Redmile Group, EcoR1 Capital, and Adiumentum Capital Management, as well as a major public biotechnology company, marking a significant vote of confidence in Atara’s potential.
Board Developments and Strategic Growth
In conjunction with this financial move, Greg Ciongoli, founder and managing partner of Adiumentum Capital Management, will join Atara’s Board of Directors. Greg’s addition is timely as Atara gears up for critical milestones including the prospective U.S. approval of tab-cel, its leading therapy candidate, and several important data readouts from its CAR-T portfolio.
Pascal Touchon, Atara’s President and CEO, expressed enthusiasm about Greg’s upcoming contributions, especially as he prepares to transition to Chairman of the Board. Touchon highlighted Greg’s extensive investment experience and deep industry insights as valuable assets that will complement the existing board.
Use of Proceeds and Future Prospects
The gross proceeds from the offering are expected to be $36 million, before fees and expenses. Atara plans to allocate these funds towards working capital and other general corporate purposes, supporting ongoing research and operations as the company continues to advance its pipeline of transformative cell therapies.
This infusion of capital and strategic insight marks an exciting chapter for Atara as it continues to innovate within the biotechnology space, promising enhanced therapies for patients grappling with cancer and autoimmune diseases. The investor community and industry watchers are keenly observing Atara, anticipating its next breakthroughs in the dynamic field of immunotherapy.
