Applied Therapeutics to sell 12.3M shares at $7.00 in private placement

Applied Therapeutics has entered into a securities purchase agreement for a private placement of $100 million of equity. The Company entered into a definitive securities purchase agreement, dated as of February 27, 2024, for the sale of 12,285,714 shares of the Company’s common stock, par value $0.0001 per share at a purchase price of $7.00 per share and 2,000,000 pre-funded warrants to purchase common stock at a purchase price of $6.999, which is equal to the purchase price per share of common stock less the $0.001 per share exercise price of each pre-funded warrant in a private placement. The Private Placement is expected to result in gross proceeds to the Company of approximately $100 million, before deducting placement agent commissions and other offering expenses. The financing consisted of participation from new and existing investors, including Perceptive Advisors, Janus Henderson Investors, Venrock Healthcare Capital Partners, Adage Capital Partners, Frazier Life Sciences, Logos Capital, Vestal Point Capital, and Rock Springs Capital. The Private Placement is expected to close on or about March 1, 2024, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds to fund commercial activities for govorestat and to further develop other pipeline candidates, and for working capital and general corporate purposes. The capital raised in the Private Placement, in addition to current cash and potential milestones expected from its Advanz European licensing partnership, are expected to fund the business into 2026. Leerink Partners, RBC Capital Markets, Baird, and UBS Investment Bank acted as placement agents in the transaction. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel for the Company.