Grail announces private placement for gross proceeds of $325M

Grail (GRAL) announced that it has entered into a securities purchase agreement for a private placement that is expected to result in gross proceeds of approximately $325M, before deducting placement agents’ fees and other expenses. The private placement included the participation by new and existing institutional investors, including Deep Track Capital, Farallon Capital Management, Hims & Hers, Braidwell LP, three life sciences investment firms, and a tech and life sciences focused family office investment firm. Grail currently expects to use the net proceeds from the private placement to fund its commercial activities and reimbursement efforts, as well as for working capital and other general corporate purposes. Grail believes its cash, cash equivalents and investments, including the expected net proceeds from the private placement, will provide sufficient funding of planned operations into 2030, not including the previously announced agreement by Samsung C&T and Samsung Electronics to invest $110M in the company, subject to closing conditions. Pursuant to the terms of the securities purchase agreement, Grail has agreed to issue and sell 4,639,543 shares of common stock at a price per share of $70.05. The private placement is expected to close on October 21, subject to the satisfaction of customary closing conditions. Morgan Stanley acted as lead placement agent and Goldman Sachs & Co. LLC acted as joint placement agent for the private placement.