Key Takeaways:
- Ascentage Pharma filed a $200 million ATM offering program on Nasdaq
- Proceeds will fund clinical trials and commercialization of lead drug candidates
- The program introduces potential dilution amid a 27.9% short-selling ratio
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Ascentage Pharma sets up $200M Nasdaq ATM offering program
Ascentage Pharma Group International filed a $200 million at-the-market offering program on Nasdaq, selling American depositary shares through designated sales agents at prevailing market prices.
The Hong Kong-listed biopharmaceutical company submitted an automatic shelf registration statement on Form F-3 to the US Securities and Exchange Commission on July 20, qualifying as a well-known seasoned issuer, the company said in a filing. Each ADS represents four ordinary shares of the company, which trades on the Hong Kong Stock Exchange under ticker 06855 and on Nasdaq under its ADS program. The company's shares have an average daily trading volume of about 2.7 million shares in Hong Kong.
Proceeds will fund commercialization and clinical trials of lead drug candidates olverembatinib and lisaftoclax, working capital and general corporate purposes, or investments in complementary businesses and technologies, according to the filing. Sales under the program will be conducted through ordinary brokerage transactions on Nasdaq, over-the-counter transactions or negotiated transactions, using two execution strategies: gradual sales and block trades as agent. All sales are subject to trading blackouts, the absence of material non-public information and waivers from Hong Kong listing rules.
The ATM program introduces potential dilution for existing shareholders. Ascentage Pharma's Hong Kong-listed shares already carried a short-selling ratio of 27.9% as of July 17, exchange data show, reflecting bearish sentiment ahead of the capital raise. The company holds a market capitalization of about HK$13.3 billion. The most recent analyst rating on the stock is Buy with a HK$93 price target, implying upside from current levels.
The offering gives Ascentage Pharma flexible access to US capital markets to advance its oncology pipeline without committing to a fixed-price follow-on offering. Investors will watch the pace of ADS sales and any clinical data readouts for olverembatinib and lisaftoclax as potential catalysts for the stock.
This article is for informational purposes only and does not constitute investment advice.
