Adicet Bio Prices Public Offering of Common Stock at $135 Million

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Biotechnology company Adicet Bio announced pricing of an underwritten public offering of 9,230,770 shares of its common stock, marking it at a public offering per-share price of $13.00.

The biotech company, which is focused on the discovery and development of allogeneic gamma delta T cell therapies for cancer and other conditions, granted underwriters a 30-day option to purchase an additional 1,344,743 shares of common stock, all at the public offering price.

Overall, the offering’s gross proceeds are expected to reach up to $120 million, prior to deducting underwriting discounts and commissions and excluding any underwriting exercising the option to purchase additional shares. Adicet said the offering should close on or around February 12, 2021.

Adicet also announced it will enter into a stock purchase agreement with existing investors to a tune of up to $15 million of shares of its common stock. The price per share is expected to equal the public offering price. The company will simultaneously hold an initial closing for certain investors with the offering closing as well as a subsequent closing for other investors.

“The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering,” according to a statement made by the company. “The consummation of the private placement will be contingent upon the closing of the offering.”

Bookrunning manager of the offering is Guggenheim Securities, while co-managers for the offering include Canaccord Genuity LLC, Wedbush Securities Inc. and JMP Securities LLC.

On the morning of the announcement, Adicet Bio shares went down -1.8% premarket on $135 million capital raises.

Back in 2019, Adicet Bio raised $80 million in Series B financing, with investments made by aMoon2 Fund, Regeneron Pharmaceuticals, Inc., Johnson & Johnson Innovation – JJDC, Inc. (JJDC), OCI Enterprises, Inc, KB Investment Co., Ltd., Consensus Business Group, SBI JI Innovation Fund, Samsung Venture Investment Corporation, Handok, Inc., and DSC Investment, Inc.

"This financing will permit Adicet to continue to develop our proprietary technology, to enter the clinic in Non-Hodgkin's Lymphoma and to advance our solid tumor programs,” said Anil Singhal, Ph.D. President and Chief Executive officer of Adicet Bio, at the time of the Series B financing announcement. “We are gratified with the support of the investment community."

A year later, resTORbio and Adicet Bio entered into a merger agreement to advance the latter company’s lead asset, ADI-001, an allogeneic gamma delta T cell therapy that expresses a chimeric antigen receptor targeting CD20 for non-Hodgkin’s lymphoma.

“After a thorough evaluation of strategic alternatives, the Board of Directors of resTORbio believes that this merger represents the highest-potential value creation opportunity for resTORbio stockholders,” said resTORbio’s Co-Founder, President and Chief Executive Officer Chen Schor. “The combined company will leverage Adicet’s scientific and product development expertise and pipeline of engineered immune cell therapeutics for cancer based on its proprietary gamma delta T cell therapy platform. We believe this transformative transaction will provide the resources for the combined company to advance multiple programs into the clinic, including Adicet’s lead candidate, ADI-001, a gamma delta CAR-T cell therapy targeting CD20, and expand the pipeline in oncology and other indications.”

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