Atara Biotherapeutics, Inc. (NASDAQ: ATRA) saw a significant rebound on Tuesday during the after-market session, rising 16.15% to $7.91. The ATRA stock finished at $6.81 during the regular trading session, following a notable decline of -10.39%. This recovery followed. The company’s announcement of a strategic equity move after market closure was what caused the stock price volatility.
Atara Entered New Sock Issuance and Strategic Agreements
Atara Biotherapeutics announced that it has entered into definitive agreements to issue and sell 758,900 shares of common stock at a price of $8.25 per share. Pre-funded warrants, which permit the acquisition of up to 3,604,780 shares of common stock at a little lower price of $8.2499 per share, were also agreed to be issued and sold by the firm. These deals show a high level of investor confidence since they are 15% above Atara’s volume-weighted seven-day average price.
The agreements were established with entities connected to Redmile Group, EcoR1 Capital, and Adiumentum Capital Management, along with a significant strategic investment from a large public biotechnology company. The pre-funded warrants are immediately exercisable upon issuance and have an exercise price of $0.0001 per share. The offering is anticipated to close around September 5, 2024, contingent upon the fulfillment of customary closing conditions.
Strategic Appointment AT ATRA Board
In conjunction with the offering, Greg Ciongoli, founder and managing partner of Adiumentum Capital Management, will join Atara’s Board of Directors. With the U.S. about to approve their novel cell treatment, tab-cel, and the upcoming CAR-T data readouts, Atara sees this as a critical time. It is anticipated that Ciongoli’s deep industry understanding and vast investing experience would greatly augment the Board’s competence.
Financial Impact and Use of Proceeds
Before deducting associated costs, the gross profits from these offers are projected to reach around $36 million. In order to position the business for future development and innovation in the field of cell therapy, Atara intends to use these funds for working capital and general corporate reasons.