In response to revealing the pricing information of its recently announced common-stock offering, DBV Technologies (NASDAQ:DBVT), a clinical-stage biotech focused on food allergies, saw its stock rise 11% on Thursday.
Here are the details from the deal:
- The company is selling 5.2 million ordinary shares and will raise $70.4 million. The shares are being sold as American depositary shares (ADSs), and as ordinary shares in Europe. Each ADS represents the right to receive one-half of one ordinary share.
- A total of 1.66 million ordinary shares will be sold in the form of 3.33 million ADSs in the United States, Canada, and certain other countries outside Europe. The price is $6.75 per ADS based on current exchange rates.
- 3.55 million ordinary shares will be sold in Europe at a public offering price of 12.02 euros per share.
- The underwriters of the deal have been granted the option to purchase up to 1.56 million ADSs as well.
- The company plans on using the proceeds to fund the continued development of its pipeline and prepare for the commercialization of the Viaskin Peanut allergy treatment.
- As part of the deal, the company's directors and executive officers have agreed to enter into a lockup period during which they cannot sell shares for 90 days.
Traders appear to be excited about the terms of this capital raise.
It isn't often that a company raises capital from a common-stock offering and its share price goes up. That likely indicates that Wall Street was assuming the pricing details of the deal were going to be far more dilutive than they are.
Short-term movements aside, the next big event for investors to look forward to is the resubmission of Viaskin Peanut to the Food and Drug Administration. The company expects that to happen in the third quarter of this year.
Will Viaskin Peanut finally go on to win regulatory approval and turn into a commercial success? Only time will tell.