Harpoon Therapeutics announces up to $150M private placement

Harpoon Therapeutics entered into a securities purchase agreement for a private placement in public equity financing that is expected to result in upfront gross proceeds of approximately $100 million, with up to an additional approximately $50 million of gross proceeds upon cash exercise of warrants, before deducting placement agent fees and offering expenses. The PIPE financing was led by a leading biotechnology investor associated with one of the largest alternative asset managers, with participation from new and existing investors including Soleus Capital, Commodore Capital, New Leaf Venture Partners, Cormorant Asset Management, RA Capital Management, Invus, Surveyor Capital, K2 HealthVentures, Ally Bridge Group, Lion Point Capital, and a large mutual fund. Pursuant to terms of the securities purchase agreement, at the closing of the financing, the Company will issue an aggregate of 17,167,350 shares of its common stock and accompanying warrants to purchase up to an aggregate of 8,583,675 shares of its common stock, at a combined purchase price of $5.8345 per share and accompanying warrant. Each full warrant will represent the right to purchase one share of the Company’s common stock at an exercise price of $5.8345 per share. In lieu of shares of common stock, certain investors are purchasing pre-funded warrants at a combined purchase price of $5.8344 per share and accompanying warrant, which equals the purchase price per share of common stock and accompanying warrant, less the $0.0001 per share exercise price of each pre-funded. The accompanying warrants will be exercisable upon issuance for a period of three years following the date of issuance. The accompanying warrants are only exercisable in cash. The PIPE financing is being conducted in accordance with applicable Nasdaq rules and was priced in accordance with the “Minimum Price” requirement as defined in the Nasdaq rules. The PIPE financing is expected to close on or about October 25, 2023, subject to satisfaction of customary closing conditions. The Company intends to use the net proceeds to fund its clinical development programs from its platforms, including ongoing as well as future late-stage clinical studies of HPN328. The proceeds will also be used for working capital and other general corporate purposes. The aggregate proceeds from this financing, combined with current cash and cash equivalents, are expected to be sufficient to fund the current operating plan into 2026. TD Cowen is acting as the lead placement agent for the PIPE financing. Canaccord Genuity and H.C. Wainwright & Co. are also acting as placement agents for the PIPE financing.