Lexeo prices 20.8M shares at $2.8825 in private placement

Lexeo Therapeutics (LXEO) has entered into a securities purchase agreement with a select group of institutional and healthcare accredited investors to issue and sell an aggregate of 20,790,120 shares of its common stock or, in lieu thereof, to certain investors, pre-funded warrants to purchase 6,963,556 shares of Common Stock, in a private placement. Each full Share will be accompanied by a warrant to purchase one-half of a share of Common Stock. The purchase price for each Share and accompanying Common Warrant will be $2.8825. Lexeo anticipates the gross proceeds from the private placement to be approximately $80M, before deducting any offering related expenses. The private placement is expected to close on May 28, subject to customary closing conditions. The Pre-Funded Warrants will have an exercise price of $0.0001 per share until exercised in full, and the Common Warrants will have an exercise price of $2.82 per share and expire on May 28, 2029. The private placement was co-led by Frazier Life Sciences and Janus Henderson Investors with participation from new and existing investors, including Adar1 Capital Management, Affinity Healthcare Fund, Ally Bridge Group, Coastlands Capital, Surveyor Capital, Vestal Point Capital, and Woodline Partners. J.P. Morgan and Oppenheimer & Co. acted as co-lead placement agents for the transaction. Baird also acted as placement agent. Lexeo intends to use net proceeds from the private placement to fund advancement of ongoing clinical stage programs, and for working capital and general corporate purposes. The proceeds from this private placement, combined with current cash, cash equivalents and marketable securities are expected to fund Lexeo’s operating and capital expenditures into 2028.