Theratechnologies Inc T.TH

Theratechnologies Establishes New At-The-Market Facility

[archeo753]

2021-07-23 19:30 ET - News Release

 

Theratechnologies Establishes New At-The-Market Facility

Canada NewsWire

MONTREAL, July 23, 2021

MONTREAL, July 23, 2021 /CNW Telbec/ - Theratechnologies Inc. ("Theratechnologies" or the "Company") (TSX: TH) (NASDAQ: THTX), a biopharmaceutical company focused on the development and commercialization of innovative therapies, today announced that it has established an at-the-market ("ATM") equity program allowing Theratechnologies to issue and sell up to US $50 million common shares from treasury (the "Common Shares") to the public at the Company's sole discretion and at the prevailing market price. Sales of the Common Shares under the ATM program will be made pursuant to the terms of a sales agreement dated July 23, 2021 with Cantor Fitzgerald & Co (the "Agent"). The volume and timing of distributions under the ATM program, if any, will be determined at the Company's sole discretion, subject to applicable regulatory limitations.

All Common Shares sold pursuant to the ATM will be sold through the Nasdaq Capital Market or another marketplace upon which the Common Shares are listed, quoted or otherwise traded in the United States, at the prevailing market price at the time of sale.

In connection with the ATM, Theratechnologies has filed a prospectus supplement dated July 23, 2021 (the "Prospectus Supplement") with the securities regulatory authorities in each of the provinces of Canada and with the United States Securities and Exchange Commission ("SEC"), which supplements the Company's Canadian short form base shelf prospectus dated November 15, 2019 (the "Base Shelf Prospectus"), and the Company's shelf registration statement on Form F-10 declared effective on November 15, 2019 by the SEC. A copy of the Prospectus Supplement is available on our SEDAR profile at www.sedar.com or on EDGAR at www.sec.gov. Alternatively, a copy of the Prospectus Supplement and accompanying base shelf prospectus are available upon request by contacting the Agent, Attn: Capital Markets, 499 Park Avenue, 4^th Floor, New York, New York 10022 or by email at [e-mail].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of, the securities under the ATM program in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful.

About Theratechnologies

Theratechnologies (TSX: TH) (NASDAQ: THTX) is a biopharmaceutical company focused on the development and commercialization of innovative therapies addressing unmet medical needs. Further information about Theratechnologies is available on the Company's website at www.theratech.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Forward-Looking Information

This press release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and forward-looking information under applicable Canadian securities laws (such forward-looking statements and forward-looking information are collectively referred to herein as "forward-looking statements"), that are based on our management's beliefs and assumptions and on information currently available to our management. You can identify forward-looking statements by terms such as "may", "will", "should", "could", "would", "outlook", "believe", "plan", "envisage", "anticipate", "expect" and "estimate", or the negatives of these terms, or variations of them. The forward-looking statements contained in this press release include, but are not limited to, statements regarding the offer and sale of Common Shares, and the use of proceeds from the ATM program.

Forward-looking statements are based upon a number of assumptions and include, but are not limited to, the following: the Covid-19 pandemic will have limited adverse effect on the ATM program, the price, volume, timing and the regulatory approval for any distributions, the proceeds from the ATM program will be allocated for the activities set forth herein and we will have enough funds to carry out our business plan.

We refer potential investors to the "Risk Factors" section of our annual information form dated February 24, 2021 available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov as an exhibit to our report on Form 40-F dated February 24, 2021 under Theratechnologies' public filings for additional risks regarding the conduct of our business and Theratechnologies. The reader is cautioned to consider these and other risks and uncertainties carefully and not to put undue reliance on forward-looking statements. Forward-looking statements reflect current expectations regarding future events and speak only as of the date of this press release and represent our expectations as of that date.

We undertake no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise, except as may be required by applicable law.

SOURCE Theratechnologies Inc.

View original content: https://www.newswire.ca/en/releases/archive/July2021/23/c9570.html

Contact:

For Investor Inquiries: Philippe Dubuc, Senior Vice President and Chief Financial Officer, [e-mail], 514-336-7800; Leah Gibson, Senior Director, Investor Relations, [e-mail], 617-356-1009

© 2021 Canjex Publishing Ltd. All rights reserved.

[archeo753]

Why would TH do this at this time?  Don't they have $50 million plus in the bank.  Is this the price they have to pay for Cantor to have their analyst cover the stock?

[scarlet1967]

They had about $57 millions by end of May. Question is what do they need the extra money for? It can't be for oncology program as it's far too early to raise funds for future  phases also if results are good the SP would appreciate thus they could raise same amount with far less shares. Its too early to start raising funds for prospects again if oncology results are good they could

[scarlet1967]

not prospects but convertibles.

[jfm1330]

It looks like a company that wants to be able to take advantage of a possible sharp stock price rise on good news to come. No need for a bought deal at a preestablished price and warrants this time. They will strike if it makes sense.

[1998novl]

Sensible strategy 

[Wino115]

We used to call these "dribble outs".  It is ok for small amounts like this and means you don't need the money, but may opportunistically look to feed shares into a high demand spike or the brokers clients saying they will take some down at market.  It's a potentially slower way to raise money if you need it and it is $ capped, not share amount capped.  The

[scarlet1967]

The converts are due in couple of years to me it's more about the NASH negotiations as per the timing of announcement few days after the partnership plans. Now they are better positioned to strike a deal.  

[palinc2000]

Cant find the Prospectus Supplement which was supposedly filed on Sedar but nevertheless I dont particularly like ATM financing  in a low volume environment...There is also absolutely no obligation for the company to refrain from selling at or near or lower than the current SP. Every rally could be met with increased Supply coming from the ATM thus putting a lid on the SP  We have no

[longterm56]

My ownership of THTX has gone down over 30% since the beginning of the year, without selling a single share!! This has not been a good investment!

[1998novl]

Longterm, your investment is actually up 36% since Jan 1 this year, a very good return year to date.

[SPCEO1]

While TH does not deserve us respecting them to handle this in a good way, I have to believe they will. If their prospects are as good as we think they might be in cancer, they will be raising new money at some point to pursue larger phase II trials. So, assuming they are clever, this allows them to raise money at a high price, hopefully high enough so the average price of the OO and this share

[palinc2000]

The proof will be in the pudding!!! They need to repay the Convert which is beginning to haunt them and Paul has mentioned the Convert a couple of times in the last few months.....The CEO who did the Convert is no more there but the CFO is still there As Wino mentioned the ATM is dollar capped but is open ended with regards to the number of shares...

[SPCEO1]

If cancer turns out to be a winner the probability TH has to write a big check in June 2023 drops dramatically. If they also sign a worthwhile partnership deal on NASH, it drops even further. There are a couple of big "ifs" there but my best guess is they never have to write that check. A lot depends on the cancer results.

[scarlet1967]

“Theratechnologies Inc. (TSX:TH) announced today that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets pursuant to which the underwriters have agreed to purchase from the company and sell to the public US$50,000,000 aggregate principal amount of convertible unsecured senior notes due June 30, 2023 (the “Notes”) at a price of US$1,000 per Note (the

[Bucknelly21]

Is anybody considered that they might be doing this because of a possible acquisition to add to the pipeline?

[archeo753]

My first thought was that Cantor might have some clients that want shares at today's price and don't want to drive up the share price by aquiring in the open market.  TH could release these ATM shares until they get their fill therefore dilluting legacy shareholders at what we all see as a discount to what the TH should be selling for.  Glad to see others here have more positive

[SPCEO1]

That is a risk but surely they will not go down that path again. When nearly every other company is able to get its share price higher in today's market without having to be taken to the cleaners by institutional investors on the prowl for stupid management teams and boards willing to sell at ultra low prices, it would be quite devastating to see TH be a two time loser on that front. And I don

[qwerty22]

In my view the bar is pretty low for what constitutes "good" results in these first patients. +20% of Ph1 patients can be so far gone with their cancers that they progress exemely rapidly and even quickly die, as we saw with the first patient. Christain said maybe 75% of enrolled patients might be Sort+, that sounds like a top end estimate to me but that means another 25% (at least) will

[scarlet1967]

That thought crossed my mind in fact that was brought up during the CC. In the past when they raised funds often they stated a reason for it but this ATM program's announcement didn't thus all the speculations. One would think with their oncology program could potentially expand to more therapeutic programs for various cancers , they might also have started working on more preclinical

[palinc2000]

Two years is actually a short time.....Raising 50 million US  via the ATM will take quite a bit of time based on trading volumes we have been accustomed......Do you think the BOD is willing to bet that Oncology will be a success ?What if Phase 1 is a dud? The Convert has been a dark cloud since about 3 months after issuance when the market realized that the 500 million in Trogarzo sales

[scarlet1967]

I am with Spceo on this one. They sounded very positive re the oncology only last week so they should wait until the results are out thus higher SP and volume if this has anything to do with converts and if despite all the positive signals the program won't make it to phase 2,no need to fund it. Then they have only NASH if they get a good deal that couid potentially take care of the converts

[SPCEO1]

The board would actually be quite foolish to not wait to see what the  phase I oncology results might be. Given the potential magnitude of those results on the stock iand the nearness of those results t would be really silly to raise money you do not need anytime in the next three months. If they do satrt to use the facility before the cancer results are out that would be a good indication

[palinc2000]

So your opinion is that they wont issue shsres under the Atm facility till phase 1 redults are announced....My opinion is that they will not wait for Phase 1 results .... Easy to verify....  

[SPCEO1]

It will be easy to verify eventually, but probably not timely enough for us to know what their true opinion on the outcome of the cancer trial will be before we actually see those results.  Hopefully, the CEO will address their plans publically for this new ATM and help the market understand their thinking so we can stop fussing about it.  If they had a reputation for looking out for

[palinc2000]

Putting an ATM in place is very easy and could have been put in place much later......I dont believe in rabbits coming out of a hat but maybe tthey think they are close to a partnership on Nash which would be market moving and completely unrelated to oncology. With regards to oncology I am using the premise that no results are to be expected till close to the end of 2021

[SPCEO1]

On NASH, I am assuming they are in the early stage of negotiations but you could be correct and that might be the reason for the timing on the ATM. They did get a person hired some time back, they said they have already hired a consultant to help them identify prospects and they may havhe known since the OO/NO they had to partner NASH since they were unable to raise sufficient funds at that time

[palinc2000]

To be clear I am not suggesting that the strategy is stupid,,,We dont know the reasons for implementing this now but I AM CONVINCED it is not related to unreleased big positive surprise in oncology,,,,They have a better idea than all of us but this is an ongoiing first in human clinical trial with potentially good results  but they dont have a crystal ball.... Maybe the strategy is to be in a

[qwerty22]

You've really got to ask yourself what can the data at this moment in time tell insiders. Well any efficacy signals now (at lower doses) would look super positive for what might come later. Bad safety signals would look super negative. Pretty much any other circumstances would mostly warrant a wait-and-see approach. I really can't see insiders getting more certainty until summer is over

[SPCEO1]

That is probably right. I would not expect any sales until after cancer news is out and this is another indication that news will be good. And Cantor will likely pick up coverage now, which is good. I am not sure what they would need the money for but perhaps they could be thinking of a very sizable phase II trial in cancer where they target multiple cancers?

[qwerty22]

Because this is announced after the Cantor event is this a sign it went well? Or was it likely already signed and sealed before the event?