Sangamo Therapeutics, Inc. (NASDAQ: SGMO) shares take a beating Friday. The genomic medicine company announced that it has entered into a securities purchase agreement with institutional investors, providing for the purchase and sale of an aggregate of 24,761,905 shares of its common stock and pre-funded warrants to purchase up to an aggregate of 3,809,523 shares of common stock, together with accompanying warrants to purchase up to an aggregate of 28,571,428 shares of common stock.
The combined offering price of each share of common stock and accompanying warrant is $0.84, priced at-the-market under Nasdaq rules. The combined offering price of each pre-funded warrant and accompanying warrant is $0.83. The warrants will become exercisable six months from issuance, expire five and a half years from the issuance date and have an exercise price of $1.00 per share.
The gross proceeds to Sangamo from the offering, before deducting the placement agents’ fees and other offering expenses, are expected to be approximately $24 million. The offering is expected to close on or about March 26, 2024, subject to customary closing conditions. Sangamo anticipates using the net proceeds from the offering to fund the development of neurology-focused genomic medicines pipeline, novel AAV capsid delivery technology and other general corporate purposes.
SGMO shares surrendered 11 cents, 11.8%, to 86 cents.
