Cassava Sciences Seeks $200M From Equity Offering At 15% Discount To Fund Development Of Lead Candidate

Cassava Sciences Inc (NASDAQ: SAVA) has entered into a definitive agreement with several institutional investors for the purchase of 4.1 million common shares at $49 per share, for gross proceeds of approximately $200 million, in a registered direct offering. The offer price is at a 15% discount from the last close price of $57.56 on Tuesday.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering and is expected to close by February 12.
Cassava Sciences intends to use the net proceeds to develop simufilam, its lead drug candidate for Alzheimer's disease.
Earlier this week, shares rallied after the company announced expanding the size of the ongoing simufilam open-label study and its plans to initiate a six-month study in patients who complete at least one year of open-label treatment with simufilam.
Price Action: SAVA dropped 12.7% at $50.27 during premarket trading hours on the last check Wednesday.