Fractyl Health Announces Pricing of $20 Million Underwritten Public Offering

Core Viewpoint - Fractyl Health, Inc. has announced a public offering of 19,047,619 shares of common stock, along with Tranche A and Tranche B warrants, aiming for gross proceeds of $20 million to support its metabolic disease treatment programs [1][5]. Offering Details - The shares are priced at $1.05 each, with each share sold together with one Tranche A warrant (2-year term) and one Tranche B warrant (5-year term) [2]. - The exercise price for both warrant tranches is set at $1.05 per share, and the warrants do not have variable priced resetting mechanisms or price-based anti-dilution features [2]. - The Tranche A warrants can be called by the company after the release of 3-month randomized midpoint clinical data from the ongoing REMAIN-1 study, contingent on certain conditions being met [3]. Additional Options - The underwriters have a 30-day option to purchase up to an additional 2,857,142 shares of common stock, along with associated warrants, at the public offering price [4]. Financial Projections - The company expects to receive approximately $20 million from this offering, with potential future proceeds of up to $40 million if the warrants are fully exercised for cash [5]. - The net proceeds will be utilized to support the Revita and Rejuva pipeline programs, as well as for working capital and other general corporate purposes [5]. Company Background - Fractyl is focused on innovative treatments for metabolic diseases, including obesity and type 2 diabetes, aiming to shift from chronic symptomatic management to durable disease-modifying therapies [9]. - The company holds a robust intellectual property portfolio, with 32 granted U.S. patents and around 40 pending U.S. applications, alongside numerous foreign patents [9].