ADC Therapeutics to sell 13M shares at $3.53 in private placement

ADC Therapeutics (ADCT) announced that it has entered into securities purchase agreements for the sale of its equity securities to certain institutional investors in a $100M private investment in public equity financing. In the PIPE, ADC Therapeutics is selling 13M common shares at $3.53 per share and pre-funded warrants to purchase 15.7M common shares at $3.43, per pre-funded warrant, which is the price per common share in the PIPE minus the exercise price of CHF 0.08 per pre-funded warrant. Gross proceeds from the PIPE financing are anticipated to be approximately $100M before deducting placement agent fees and offering expenses. The PIPE is expected to close on June 16, 2025, subject to customary closing conditions. ADC Therapeutics intends to use the net proceeds from the PIPE to fund multiple catalysts primarily in support of Zynlonta clinical development as well as Zynlonta commercialization activities, working capital and general corporate purposes. The PIPE was led by Redmile Group and includes participation from other institutional investors. Jefferies, Guggenheim Securities, Cantor and RBC Capital Markets are acting as placement agents for the PIPE. Davis Polk & Wardwell LLP and Homburger AG are acting as legal advisors to ADC Therapeutics.