The current surge in Nkarta, Inc. (NASDAQ: NKTX) shares on the US stock market indicates a remarkable increase of 22.42%, reaching $10.92 per share at the last check. This notable upswing in NKTX stock value is attributed to a strategic equity maneuver.
In an underwritten offering of 21,010,000 shares of its common stock, Nkarta (NKTX) announced the pricing details for pre-funded warrants. The pricing was to purchase 3,000,031 shares of the company’s stock at a price of $10.00 per share. These pre-funded warrants retail for $9.9999 each to represent the offering price of the common stock per share less the $0.0001 exercise fee.
Both new and existing investors have actively participated in this offering, featuring notable entities such as Boxer Capital, Adage Capital Partners LP, Commodore Capital, Janus Henderson Investors, Cormorant Asset Management, an affiliate of Deerfield Management, OrbiMed, RA Capital Management, EcoR1 Capital, Ridgeback Capital Investments, SR One, Samsara BioCapital, and a leading mutual fund.
Before accounting for underwriting discounts, commissions, and offering expenses, Nkarta generated $240.1 million in gross proceeds. Nkarta’s intended utilization of the net proceeds encompasses the continued advancement in research and clinical development of NKX019, further enhancement of internal manufacturing capabilities, and allocation towards working capital and general corporate needs.
This offering is slated to conclude on or around March 27, 2024, contingent upon customary closing conditions. Recent investigations have underscored the potential of CD19-directed cell therapy to bring about substantial transformation. It is believed that NKX019 may replicate these promising early outcomes while ensuring superior safety and accessibility.
Nkarta’s methodology leverages the inherent advantages of NK cells, which include fludarabine-free lymphodepletion, profound and swift B-cell eradication, and the added convenience of on-demand dosing. Collaborative efforts with investigators, sites, and patients are progressing rapidly, and Nkarta remains steadfast in its objective to commence dosing in clinical trials of NKX019 for refractory lupus nephritis in the first half of 2024.
