Esperion Shares Fall After $225M Capital Raise Via Equity

Esperion Therapeutics Inc ESPR priced its previously announced underwritten public offering of 32.14 million shares and short-term warrants to purchase up to 32.14 million shares at $7/share and accompanying warrant.

• The short-term warrants have an exercise price of $9.00 per share, are exercisable immediately, and will expire two years following the date of issuance.
• H.C. Wainwright & Co. is acting as sole book-running manager for the offering.
• The underwriter has an option to purchase up to an additional 4.82 million shares or warrants to purchase up to an additional 4.82 million shares. The offering will close by December 7.
• The Company will use the gross proceeds of approximately $225.0 million to fund the ongoing commercialization efforts for Nexletol and Nexlizet.
• In October, Esperion announced to reduce workforce by 40% and further shift marketing strategy towards a greater proportion of digital and virtual outreach.
• The move is expected to reduce operational expense significantly in FY 2021 & FY 2022; estimated annualized cash savings of at least $80 million.
• Price Action: ESPR shares are down 32.1% at $6.09 during the premarket session on the last check Friday.