Avalo Therapeutics, Inc. (“Avalo” or the “Company”) (NASDAQ:AVTX) announced that it has entered into an underwriting agreement with Jefferies LLC and RBC Capital Markets, LLC under which the underwriters agreed to purchase, on a firm commitment basis, 12,500,000 shares of common stock of the Company, at a public offering price of $2.20 per share (the “Public Offering Price”). The offering is expected to close on or about September 17, 2021, subject to customary closing conditions.
Jefferies and RBC Capital Markets are acting as joint book-running managers for the offering.
The Company has also granted to the underwriters a 30-day option to purchase up to an additional 1,875,000 shares of common stock at the Public Offering Price to cover over-allotments in the sales of the shares of common stock, if any. The gross proceeds to Avalo from this offering, before deducting underwriting discounts and commissions and estimated offering expenses and excluding any exercise of the underwriters’ option to purchase additional shares of common stock, are expected to be approximately $27.5 million. Assuming the full exercise of the over-allotment option, total gross proceeds to Avalo would be approximately $31.6 million. Avalo intends to use the net proceeds of the offering for working capital and other general corporate purposes.
