In a press release issued yesterday Moderna informed that it has commenced an underwritten public offering of $500 million in shares of common stock. Additionally, Moderna expressed its decision to grant the underwriters a 30-day option to purchase up to an additional $75 million in shares of common stock in connection with the public offering.
The good news that negative investors and sell-side investors won’t consider is the important causes behind the financing, i.e., the good usage of the net proceeds of the offering. In this respect, Moderna has decided to: fund clinical development and discovery of new therapeutics, further fund development of its mRNA technology platform and create new modalities. Moderna has also decided to spend on funding working capital and other general corporate priority purposes.
Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are acting as joint book-running managers for the offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering.
A registration statement on Form S-3 relating to these securities has previously been filed with the Securities and Exchange Commission (SEC) and has become effective.
The offering will be made only by means of a prospectus. A copy of the prospectus supplement relating to the offering will be filed with the SEC and may be obtained, when available, from Goldman Sachs & Co. LLC by mail at: Attn: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at: 1-866-471-2526, by fax at: 1-212-902-9316, or by email at: [email protected], from Morgan Stanley & Co. LLC, by mail at: Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.
This Company’s press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Prohost Observations
The financial offering has indeed been the reason behind the loss that occurred after trading hours yesterday. The early gains yesterday were caused by the positive news about the capability of Moderna in designing and creating a coronavirus prophylactic vaccine in a short time. The firm’s enabling capability emanates from the fact that its products and vaccines consist of mRNA of its own making.
The selloff of the stock because of the firm’s financing should encourage shareholders to take advantage and accumulate Moderna’s stock on weaknesses.
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