Item 1.01. Entry into a Material Definitive Agreement.
On February 27, 2024, Absci Corporation (the “Company”) entered into an underwriting agreement (the “Underwriting Agreement”) with Morgan Stanley & Co. LLC and Cowen & Company, LLC (the “Underwriters”), relating to the issuance and sale of an aggregate of 16,700,000 shares (the “Underwritten Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) to the Underwriters (the “Offering”). Pursuant to the Underwriting Agreement, the Company also granted the Underwriters a 30-day option to purchase up to 2,505,000 additional shares (the “Option Shares” and together with the Underwritten Shares, the “Shares”) of Common Stock.
The Shares will be sold to the public at a public offering price of $4.50 per share.
The offering was made pursuant to the shelf registration statement on Form S-3 (File No. 333-267043) that was filed by the Company with the Securities and Exchange Commission (“SEC”) on August 24, 2022, and declared effective by the SEC on September 2, 2022, and a related prospectus supplement dated February 27, 2024. The Company expects the offering to close on March 1, 2024.
The Company estimates that the net proceeds from the Offering will be approximately $70.2 million, or approximately $80.8 million if the Underwriters exercise in full their option to purchase the Option Shares, after deducting underwriting discounts and commissions and estimated offering expenses. The Company intends to use the net proceeds from this offering to fund the development of its internal asset programs, continued investment in its Integrated Drug Creation platform including related AI and wet-lab technologies, and for working capital and other general corporate purposes. Following the consummation of this offering, the Company expects its existing cash and cash equivalents and restricted cash and short-term investments will be sufficient to fund its operations into the first half of 2027.
The Underwriting Agreement contains customary representations and warranties, conditions to closing, market standoff provisions, termination provisions and indemnification obligations, including for liabilities under the Securities Act of 1933, as amended. The Underwriting Agreement is filed as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated herein by reference, and the foregoing description of the terms of the Underwriting Agreement is qualified in its entirety by reference to such exhibit.
A copy of the opinion of Goodwin Procter LLP, relating to the validity of the Shares in connection with the offering, is filed as Exhibit 5.1 to this Current Report on Form 8-K.
Item 8.01. Other Events.
On February 27, 2024, the Company issued a press release announcing the launch of the Offering and a press release announcing the pricing of the Offering. Copies of these press releases are filed as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
