CRISPR Therapeutics AG (NASDAQ:CRSP) shares moved lower Tuesday after the biotechnology company outlined plans to raise capital through a new convertible debt offering.
The gene-editing firm said it intends to issue $350 million in convertible senior notes due 2031 in a private placement aimed at qualified institutional investors.
Convertible Note Offering
CRISPR Therapeutics plans to sell the notes under Rule 144A of the Securities Act. The rule permits sales to institutional buyers without public registration.
The company may also grant initial purchasers an option to acquire an additional $52.5 million of notes. Buyers can exercise that option within 13 days of the issuance date.
The debt instruments will rank as senior unsecured obligations of the company. Interest payments will occur twice a year.
CRISPR expects to make those payments every March 1 and Sept. 1, beginning in September 2026. The securities will mature on March 1, 2031.
Investors may convert the notes into common shares before maturity under specified conditions. The conversion will deliver shares with a nominal value of CHF0.03 ($0.039).
The company will determine the coupon rate and conversion terms when it prices the offering. Pricing will depend on prevailing market conditions.
Use Of Proceeds
The biotechnology developer plans to allocate proceeds from the sale toward general corporate purposes. Management did not outline specific spending priorities.
CRISPR Therapeutics develops gene-editing therapies using CRISPR/Cas9 technology. Its programs focus on treatments for blood disorders, oncology and other severe diseases.
Recent Earnings Results
In February, CRISPR Therapeutics reported its fourth-quarter and full-year 2025 financial results, highlighting continued clinical progress, expanding uptake of Casgevy, and momentum across its gene-editing and RNA-based pipeline.
Casgevy, the company's gene-editing therapy for sickle cell disease and transfusion-dependent beta thalassemia, generated $54 million in fourth-quarter revenue and $116 million for the full year.
Access to Casgevy continued to expand across key markets, with reimbursement now covering roughly 90% of eligible patients in the U.S. The therapy is also reimbursed across several European and Middle Eastern markets. In January, partner Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) secured reimbursed access for sickle cell disease patients in Scotland.
CRSP Price Action: CRISPR Therapeutics shares were down 8.54% at $53.75 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
This article What's Going On With CRISPR Therapeutics Stock Today? originally appeared on Benzinga.com
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