Soleno Therapeutics Proposes Public Offering of Common Stock

REDWOOD CITY, Calif., May 02, 2024 - Soleno Therapeutics, Inc. (Nasdaq:SLNO), a clinical-stage biopharmaceutical company that specializes in developing novel treatments for rare diseases, has announced its plans to offer and sell shares of its common stock through an underwritten public offering. As part of this offering, Soleno also intends to grant the underwriters a 30-day option to purchase an additional number of shares of common stock equivalent to 15% of the total shares sold in the offering.

The completion of the public offering is dependent on market conditions, and there is no guarantee as to whether or when it will be finalized, nor of the actual size or terms of the offering. Piper Sandler and Guggenheim Securities are serving as the joint book-running managers for this offering.

Soleno plans to allocate the net proceeds from this offering primarily to fund its ongoing research and development efforts. The main focus will be on advancing its lead candidate, DCCR tablets, which are intended for the treatment of Prader-Willi Syndrome (PWS). Additionally, the funds may be used for general corporate purposes. These purposes may include working capital, capital expenditures, other clinical trials, and corporate expenses. The company might also consider acquisitions of complementary products, technologies, or businesses, although there are currently no specific agreements or commitments in place for such acquisitions.

The securities for this public offering are being offered by Soleno under a registration statement on Form S-3ASR (File No. 333-276344), which was previously filed with and automatically declared effective by the Securities and Exchange Commission (SEC) on January 2, 2024. A preliminary prospectus supplement and an accompanying prospectus related to this offering will be filed with the SEC. Once available, copies of these documents can be obtained from Piper Sandler and Guggenheim Securities through the provided contact information. Electronic copies will also be accessible on the SEC's website at www.sec.gov. Final terms of the public offering will be disclosed in a final prospectus supplement, which will also be filed with the SEC.

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

Soleno Therapeutics, Inc. is dedicated to the development and commercialization of innovative therapies for treating rare diseases. The company’s leading candidate, DCCR (diazoxide choline) extended-release tablets, is a once-daily oral medication designed for the treatment of Prader-Willi Syndrome. This candidate has recently completed its Phase 3 development program, which supports a planned New Drug Application (NDA) submission.