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Chinook Therapeutics (KDNY) prices an upsized offering at $14.00 per share

November 9, 2021 9:15pm

KDNY closed up +$0.32 to $14.51 after Monday's -$1.77 with an aftermarket indication of +$0.24 or +1.65%

Offer and sell 7,828,572 shares of its common and 3,571,428 warrants expecting $159.6 million in proceeds

... Sell Into Strength ...

SVB Leerink and Evercore ISI are acting as joint book-running managers for the proposed offering. Oppenheimer & Co., Wedbush PacGrow and H.C. Wainwright & Co. are acting as lead managers for the proposed offering.

In addition, Chinook intends to grant the underwriters a 30-day option to purchase up to an additional 1.71 million shares

Chinook intends to use the net proceeds from this offering to advance the P3 ALIGN trial of atrasentan in patients with IgA nephropathy (IgAN) and the phase 2 AFFINITY basket trial of atrasentan in patients with proteinuric glomerular diseases, initiate later-stage clinical development of BION-1301 for IgAN, move forward the development of CHK-336 for hyperoxalurias and continue progress on research and discovery programs. The remainder of the net proceeds, if any, will be used for general corporate purposes.

The offering is expected to close on 11/15/21 - be prepared to SELL

The Bottom Line: A 52-week change of -12.7%, a 52-week high of $21.68 and a low of $10.44, a short percentage (%) of outstanding shares = 3.28% with a short percentage (%) of float = 5.72%.

Shares held by institutions = 74.65% and insiders – 7.82%

Cash = $197.15 m (last Q2) and revenue of $1.21 m …

Good luck with this pricing?

35 companies, 1 interpreter!

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