Aileron Therapeutics, Inc. (ALRN), a Nasdaq-listed company shares surged in the extended session as it rose 33.33% to $1.8 after the announcement that it reached definitive agreements with investors for the purchase and sale of 32,630,983 shares of its common stock at $1.10 per share under Nasdaq rules. Closing is expected on or about January 8, 2021, provided that all closing conditions are met.
The offering will be carried out by JonesTrading Institutional Services LLC.
After deducting the placement agent’s fees and other offering expenses, Aileron expects to receive $35.9 million as gross proceeds from the offering.
In conjunction with its cash on hand, cash equivalents, and short-term investments, Aileron intends to use the net proceeds from the public offering for clinical development of ALRN-6924 as a chemoprotective agent, working capital, and other general corporate purposes.
A shelf registration statement, Form S-3 (File No. 333-226650), was filed with the United States Securities and Exchange Commission on August 7, 2018, and became effective on July 15, 2019.
This offering will be accompanied by a prospectus supplement filed with the Securities and Exchange Commission, which will be available at the SEC’s website at www.sec.gov.
Aileron Therapeutics, Inc. is focused on a new class of stabilized cell-permeating alpha-helical peptides for the treatment of cancer and other diseases in the United States. This increase in stock price late Friday morning is a good sign that investors are confident in stocks’ future.