Ventyx Biosciences to sell 11.17M shares at $8.95 in private placement

Ventyx Biosciences entered into a stock purchase agreement for the sale of 11,174,000 shares of its common stock at an offering price of $8.95 per share in a private placement to certain qualified institutional buyers and institutional accredited investors. Gross proceeds of the private placement are expected to be approximately $100 million, before deducting placement agent fees and other expenses. The private placement is expected to close on March 11, 2024, subject to the satisfaction of customary closing conditions. The private placement was led by funds affiliated with Farallon Capital Management, with participation by Cormorant Asset Management, an affiliate of Deerfield Management Company, Redmile Group, Surveyor Capital, and other investors. Ventyx currently intends to use the net proceeds from the proposed private placement, together with existing cash and cash equivalents, to fund the clinical development of VTX3232, VTX2735, VTX002, and the preclinical development of other programs, research activities and working capital and other general corporate purposes. With the proceeds from the private placement, Ventyx expects to extend its cash runway into at least the second half of 2026. This cash estimate is a preliminary estimate and is based on information available to management as of the date of this private placement, and these estimates could change. Jefferies, Piper Sandler and LifeSci Capital are acting as the placement agents for the private placement.