| Item 1.01 | Entry into a Material Definitive Agreement. |
On November 12, 2020, Five Prime Therapeutics, Inc. (the “Company”) entered into an underwriting agreement (the “Underwriting Agreement”) with Cowen and Company, LLC and SVB Leerink LLC (the “Representatives”), as representatives of the several underwriters (collectively, the “Underwriters”), relating to the issuance and sale of 7,200,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at a price to the public of $21.00 per share (the “Offering”). In addition, the Company has granted to the Underwriters an option to purchase up to an additional 1,080,000 shares of Common Stock. The net proceeds to the Company from the Offering are expected to be approximately $141.9 million (or approximately $163.2 million if the Underwriters exercise their option to purchase additional shares in full), after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.
The Offering is being made pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-228206), declared effective by the Securities and Exchange Commission on August 22, 2019, a base prospectus dated August 22, 2019 and the related prospectus supplement dated November 12, 2020. The Offering is expected to close on or about November 17, 2020, subject to satisfaction of customary closing conditions.
The Underwriting Agreement contains customary representations, warranties, covenants and agreements by the Company, indemnification obligations of the Company and the Underwriters, including for liabilities under the Securities Act of 1933, as amended, other obligations of the parties and termination provisions. The representations, warranties, covenants and agreements contained in the Underwriting Agreement were made only for purposes of such agreement and as of specific dates, were solely for the benefit of the parties to such agreement, and may be subject to limitations agreed upon by the contracting parties. Certain of the Company’s directors and executive officers have agreed, subject to certain exceptions, not to sell or transfer any shares of Common Stock for 90 days, and the Company has agreed not to sell or transfer any shares of the Company’s Common Stock for 90 days, in each case, after November 12, 2020, without first obtaining the written consent of the Representatives.
The foregoing description of the terms of each of the Underwriting Agreement does not purport to be complete and is qualified in its entirety by reference to the Underwriting Agreement, which is attached as Exhibit 1.1 hereto and incorporated by reference herein.
A copy of the opinion of Cooley LLP relating to the legality of the issuance and sale of the Common Stock in the Offering is attached as Exhibit 5.1 hereto.
On November 12, 2020, the Company issued a press release announcing the pricing of the Offering. A copy of the Company’s press release announcing the pricing is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
| Item 9.01. | Financial Statements and Exhibits. |
