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Heron Therapeutics Announces $30 Million Private Placement Financing

Key Takeaway: Heron Therapeutics announced a $30 million private placement financing to strengthen its capital for ongoing operations. Led by Rubric Capital Management, the placement involves existing and new institutional investors purchasing over 20 million shares. The proceeds are intended for working capital and general corporate uses, although the shares are unregistered, which may pose some restrictions. The closing of this deal is anticipated to occur shortly, subject to standard conditions.

Market Sentiment Analysis

POSITIVE FACTORS

  • Heron Therapeutics secured $30 million in private placement financing, indicating strong investor interest.
  • The funding will be utilized for working capital and general corporate purposes, which may enhance company operations.
  • Involvement of established investors like Rubric Capital Management indicates confidence in Heron's potential.

CONCERNS & RISKS

  • The securities sold in the private placement are unregistered, which could limit the market for those shares.
  • Completion of the private placement is subject to market conditions and customary closing conditions, indicating potential uncertainties.

Full Press Release Details

Heron Therapeutics Announces $30 Million Private Placement Financing
SAN DIEGO, July 24, 2023 /PRNewswire/ Heron Therapeutics, Inc. (Nasdaq: HRTX), a commercial-stage biotechnology company focused on improving the
lives of patients by developing and commercializing therapeutic innovations that improve medical care, announced today that it has entered into a securities purchase agreement to sell in a private placement to institutional investors, led by
existing investor Rubric Capital Management LP and including existing and new investors, including Velan Capital, Clearline Capital and Hercules Capital, Inc. (NYSE: HTGC), 20,734,917 shares of its common stock at a purchase price of $1.37 per
share, and, to certain investors in lieu of common stock, pre-funded warrants to purchase up to 1,162,891 shares of common stock at a purchase price of $1.3699 per
pre-funded warrant, which represents the per share offering price for the common stock less the $0.0001 per share exercise price for each share underlying the pre-funded
warrant. Gross proceeds of the private placement are expected to be approximately $30.0 million, before deducting expenses. The private placement is expected to close on or about July 25, 2023, subject to the satisfaction of customary
Heron intends to use the net proceeds for working capital and general corporate purposes.
The securities being issued and sold in the private placement have not been registered under the Securities Act of 1933, as amended (the Securities
Act ), or any state securities laws and may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. Heron has
agreed to file a registration statement with the Securities and Exchange Commission (the SEC ) registering the resale of the shares of common stock issued in this private placement (the Resale Shares ).
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities being offered
in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. Any offering of the Resale Shares under the resale
registration statement will only be by means of a prospectus.
About Heron Therapeutics, Inc.
Heron Therapeutics, Inc. is a commercial-stage biotechnology company focused on improving the lives of patients by developing and commercializing
therapeutic innovations that improve medical care. Our advanced science, patented technologies, and innovative approach to drug discovery and development have allowed us to create and commercialize a portfolio of products that aim to advance
the standard-of-care for acute care and oncology patients.
Forward-looking Statements
This news release contains
forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts included in this press release, including, but not limited to, Heron s
expectations regarding the completion of the private placement, the satisfaction of customary closing conditions related to the private placement and the expected receipt and intended uses of the proceeds from the
private placement, are forward-looking statements. Heron cautions readers that forward-looking statements are based on management s expectations and assumptions as of the date of this news
release and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not limited to, uncertainties related to market conditions and the completion of the private placement on the anticipated
terms or at all; the expected future balances of Heron s cash, cash equivalents and short-term investments; the expected duration over which Heron s cash, cash equivalents and short-term investments balances will fund its operations; the
extent of the impact of the evolving COVID-19 pandemic on our business; and other risks and uncertainties described in Risk Factors and Management s Discussion and Analysis of Financial
Condition and Results of Operations in Heron s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 29, 2023, and other subsequent documents we file
with the SEC, including but not limited to our Quarterly Reports on Form 10-Q. Forward-looking statements reflect our analysis only on their stated date, and Heron takes no obligation to update or revise these
statements except as may be required by law.
Investor Relations and Media Contact:
Executive Vice President, Chief Financial Officer
Heron Therapeutics, Inc.

Frequently Asked Questions

What is the amount raised by Heron Therapeutics in its financing?

Heron Therapeutics announced a private placement financing of approximately $30 million.

When is the private placement expected to close?

The private placement is expected to close on or about July 25, 2023.

Who led the private placement investment for Heron?

The private placement was led by existing investor Rubric Capital Management LP.

What will the proceeds from the financing be used for?

The net proceeds will be used for working capital and general corporate purposes.

Are the securities from this placement registered?

The securities have not been registered under the Securities Act of 1933.

Last updated: Jul 24, 2023