89bio Announces Pricing of Public Offering

89bio, Inc. (NASDAQ: ETNB) disclosed today that it has entered into an underwriting agreement with Goldman Sachs & Co. LLC, Leerink Partners LLC, and Evercore Group L.L.C., among others, to issue and vend 11,455,882 shares of the company’s common stock. Additionally, in lieu of common stock to certain investors, the firm will issue pre-funded warrants to obtain 3,250,000 shares of common stock at a public offering price of $8.499 per share.

The offering includes an option for the underwriters to purchase up to an additional 2,205,882 shares of common stock within a 30-day period. The net proceeds from this offering are anticipated to be around $118.4 million, after deducting the underwriters’ discounts and commissions as well as estimated offering expenses.

The pre-funded warrants will be exercisable following the date of issuance. Holders of these warrants are subjected to ownership restrictions not exceeding 4.99% or 9.99%, with provisions to increase or decrease the threshold to a maximum of 19.99% with advanced notice.

The securities offered were registered under a shelf registration statement that was made effective in May 2023. A final prospectus supplement explaining the terms of the offering was filed with the U.S. Securities and Exchange Commission on November 13, 2024. The completion of the offering is expected on November 14, 2024.

In connection with the underwriting agreement, 89bio has agreed to indemnify the underwriters against certain liabilities and contribute payments that the underwriters may incur due to such liabilities. Detailed copies of the Underwriting Agreement and the form of Pre-Funded Warrant have been attached and are available for reference.

Furthermore, an opinion from Gibson, Dunn & Crutcher LLP regarding the validity of the share issuance and sale was filed alongside the agreement. Please note that the descriptions provided in this release are not exhaustive and are subject to reference in the aforementioned exhibits.

This press release follows the recent update from 374Water Inc., a related entity, outlining its financial results for the third quarter of 2024 and business initiatives. For detailed financial statements and further information, interested parties can access the full document on the respective company’s website or SEC filings.

Please be advised that this news piece serves as an informational update and does not constitute financial advice or a recommendation to buy or sell securities. Investors are encouraged to conduct their due diligence before making any investment decisions.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read 89bio’s 8K filing here.

About 89bio

89bio, Inc, a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapies for the treatment of liver and cardio-metabolic diseases. Its lead product candidate is pegozafermin, a glycoPEGylated analog of fibroblast growth factor 21 for the treatment of nonalcoholic steatohepatitis; and for the treatment of severe hypertriglyceridemia.