Taysha Gene (TSHA) Stock Surged 92.2% on a $150M Capital Raise

The Taysha Gene Therapies Inc (NASDAQ: TSHA) stock price surged 92.2% as of 9:07 EST after announcing that it had entered into a securities purchase agreement for a private placement financing (the PIPE), which is expected to result in gross proceeds of about $150 million, before expenses.

The company noted that the PIPE was led by a new investor, RA Capital Management, along with existing institutional investors such as RTW Investments, PBM Capital, TGX, Venrock HEalthacrea Capital Partners, Octagon Capital, Kyman Capital Management, GordonMD^® Global Investments LP, Acuta Capital Partners and B Group Capital.

The clinical-stage gene therapy company focused on developing and commercialising AAV-based gene therapies revealed that the funds raised could provide a cash runway up to Q3 2025. The monies would primarily support the clinical development of TSHA-102 in Rett syndrome and provide support for TSHA-120 program activities in GAN,

Taysha Gene Therapies noted that during the PIPE, it sold about 122,412,376 shares of its common stock at $0.90 per share instead of common stock to specific investors. The company also sold pre-funded warrants for purchasing up to about 44,250,978 shares of common stock at a purchase price of $0.899 per pre-funded warrant. 

Each pre-funded warrant has an exercise price of $0.001 per share of common stock and is immediately exercisable and remains exercisable until exercised in full.

Sean P. Nolan, Taysha’s Chairman and CEO, said: “We are pleased by the support from this prestigious group of new and existing investors, which we believe highlights the enthusiasm of the early clinical readout of the first patient treated in our REVEAL trial and reinforces the potential of gene therapy to transform the lives of patients suffering from devastating diseases.”

“We expect that the net proceeds from the PIPE, together with our existing cash and cash equivalents, will extend our cash runway into the third quarter of 2025 to primarily support the clinical development of TSHA-102 in Rett syndrome and provide support for TSHA-120 program activities in GAN, working capital and other general corporate purposes. With this capital infusion, we believe we are well positioned to continue to execute across key program milestones.”

The Taysha Gene Therapies (TSHA) stock price. 

The Taysha Gene Therapies (TSHA) stock price surged 92.15% to trade at $1.42, from Friday’s closing price of $0.74.