Shares of Shattuck Labs Inc (NASDAQ: STTK) declined 3.9% in after-hours trading on Tuesday after the company revealed it had commenced a public offering of its common stock.
The clinical-stage biotechnology firm said the offering will consist of shares of common stock or, alternatively for certain investors, pre-funded warrants to purchase shares of common stock. In connection with the proposed offering, Shattuck indicated it expects to grant the underwriters a 30-day option to acquire up to an additional 15% of the shares at the public offering price, less underwriting discounts and commissions.
Shattuck emphasized that the proposed transaction is conditional on market and other factors and that there is no assurance the offering will be completed, or that the size or final terms will be as currently anticipated. The company stated that all securities in the proposed transaction are being offered by Shattuck Labs.
The firms serving as joint bookrunning managers on the proposed offering are Leerink Partners, J.P. Morgan, Piper Sandler and Cantor.
Shattuck Labs is a clinical-stage biotech focused on the development of monoclonal and bispecific DR3 blocking antibodies targeting inflammatory and immune-mediated diseases. The company's lead program, SL-325, is described as a DR3 antagonist antibody designed to block the DR3/TL1A pathway.
Corporate operations are listed in Austin, Texas and Durham, North Carolina.
Context and mechanics
The announcement outlines two issuance structures: direct common stock for purchasers, or pre-funded warrants for certain investors that can be exercised into common shares. The underwriters' 30-day option to purchase an additional 15% of the shares is a standard overallotment feature, exercisable at the public offering price less customary deductions.
The company reiterated that completion of the offering depends on market conditions and other considerations, and explicitly noted that there is no guarantee regarding whether or when the offering may close or the ultimate size or terms.
Shareholder and market reaction
Following the public disclosure of the offering, Shattuck Labs' stock moved lower in after-hours trading, reflecting an immediate market reaction to the proposed issuance.