Cassava Sciences Raises Over $125 Million from Warrant Distribution

Cassava Sciences, Inc., a biotechnology firm specializing in Alzheimer’s disease, has announced that it has secured over $125 million in gross proceeds from the exercise of warrants previously distributed to its shareholders. These proceeds were generated from the issuance of approximately 5.7 million shares of common stock at an effective price of $22.00 per share. The transaction was facilitated by B. Dyson Capital Advisors, who served as the exclusive financial advisor.

Remi Barbier, President and CEO of Cassava Sciences, expressed gratitude towards shareholders for their continued support. He indicated that the success of this initial warrant distribution could pave the way for similar future endeavors. Shareholders had the option to either exercise their warrants by paying cash to the company or sell them on the open market. The terms and conditions for this exercise were established under a warrant agreement filed with the U.S. Securities and Exchange Commission (SEC).

Eric Schoen, the Chief Financial Officer, noted that most shareholders seemed to appreciate the warrant distribution. According to Schoen, shareholders had the flexibility to either sell their warrants for immediate cash returns or exercise them to increase their equity in the company.

After accounting for advisory fees and other expenses, the net proceeds from the warrants for Cassava Sciences are estimated to be over $123 million. The company plans to utilize these funds for working capital and general corporate purposes, including the ongoing development of simufilam, its leading drug candidate aimed at treating Alzheimer’s disease.

The final deadline for warrant holders to exercise their rights was May 6th, 5 p.m. New York City time. After this deadline, any unexercised warrants were redeemed by the company starting May 7, 2024, at a nominal price of $0.001 per warrant. This redemption marked the termination and expiration of all outstanding warrants, with the redemption price becoming due and payable on the same date.

The shares of common stock issued by Cassava Sciences were pursuant to an automatic "shelf" registration statement on Form S-3, filed with the SEC on May 1, 2023, which became effective immediately upon filing.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the applicable laws of that jurisdiction.

Cassava Sciences, based in Austin, Texas, is a clinical-stage biotechnology company with a mission to detect and treat neurodegenerative diseases, including Alzheimer’s disease. The company’s research focuses on stabilizing a critical protein in the brain rather than removing it.