HRTX - Heron Therapeutics rises on layoffs ~$30M private placement financing

2023-07-24 09:28:20 ET

• Heron Therapeutics ( NASDAQ: HRTX ) rose ~5% Monday pre-market after the biotechnology company said that it has reduced its employees by ~25% as part of a cost reduction plan and corporate restructuring, and is launching an ~$30M private placement financing.
• Heron Therapeutics said its cost reduction and corporate restructuring is expected to result in cash savings of ~$75M through 2025.
• Also, the restructuring is expected to result in non-recurring cash expenses of ~$5.9M in 2023.
• Also, the company has entered into a securities purchase agreement to sell 20.7M shares in a private placement to institutional investors at $1.37 per share.
• The company will also issue to certain investors, in lieu of shares, pre-funded warrants to purchase up to 1.2M shares at $1.3699 per pre-funded warrant.
• The investor group is led by existing investor Rubric Capital Management.
• The private placement is expected to close on or about July 25.
• The net proceeds are intended to be used for working capital and general corporate purposes.
• Source: Press Release

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