Zymeworks announces $50 million private placement

Canadian biotech Zymeworks (NYSE/TSX: ZYME) revealed it has entered into a securities purchase agreement with funds affiliated with EcoR1 Capital for the sale of an aggregate of 5,086,521 pre-funded warrants to purchase 5,086,521 shares of common stock, $0.00001 par value per share, in a private placement.

The aggregate gross proceeds from the offering are expected to be approximately $50 million, before deducting estimated offering expenses. Zymeworks’ shares closed up 8.6$ t $10.68 yesterday following the announcement.

Each pre-funded warrant will be exercisable at an exercise price equal to $0.0001 per share, subject to adjustments as provided under the terms of the pre-funded warrant and will be exercisable at any time on or after the closing date, subject to a post-exercise beneficial ownership limitation of 19.99%.