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February 9, 2024

BioXcel Therapeutics announces $60M proposed public offering

PHOTO | FILE IMAGE Vimal Mehta is CEO of BioXcel Therapeutics Inc.

BioXcel Therapeutics Inc. a New Haven-based biopharmaceutical company, announced a $60 million proposed public offering on Thursday.

The firm, which uses artificial intelligence to develop medicines in neuroscience and immuno-oncology, said in a news release that it has “commenced an underwritten public offering of $60 million of shares of its common stock or, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase shares of its common stock.”

In addition, BioXcel said it expects to grant the underwriters a 30-day option to purchase up to $9 million in additional shares of common stock at the public offering price, less the underwriting discounts and commissions.

The company trades on the NASDAQ exchange under the ticker symbol BTAI. The stock was trading at $2.43 per share Friday morning, just above its 52-week low of $2.23.

BioXcel said it intends to use the net proceeds of the offering to “fund ongoing and planned clinical trials, commercialization and general corporate purposes.”

In August, the company announced plans to reduce its workforce from 190 employees to 80 as a cost-savings measure. The layoff followed the announcement that BioXcel had a net loss of $53.5 million in the second quarter of 2023, and that it had cash and equivalents totaling $127.5 million.

In a report filed with the Securities and Exchange Commission on Thursday, BioXcel updated that figure, estimating that it had approximately $61.6 million of cash and cash equivalents.

The offering is subject to market and other conditions. All of the securities to be sold in the offering are being sold by the company.

BofA Securities Inc. and Truist Securities are acting as joint book-running managers for the proposed public offering.

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