Bluebird Bio Prices Public Offering Of 83.33 Mln Shares At $1.50/shr; Stock Plunges

(RTTNews) - bluebird bio Inc. (BLUE) said that it has priced its underwritten public offering of about 83.33 million shares of its common stock at a public offering price of $1.50 per share, before deducting underwriting discounts and commissions.

BLUE closed Tuesday's regular trading at $2.43 down $0.62 or 20.33%.

bluebird also granted the underwriters a 30-day option to purchase up to an additional 12.50 million shares of its common stock at the public offering price per share, less underwriting discounts and commissions.

The company expects gross proceeds from the public offering to be $125 million, before deducting underwriting discounts and commissions and offering expenses payable by bluebird and assuming no exercise of the underwriters' option to purchase additional shares of common stock. All shares in the offering are to be sold by bluebird.

bluebird plans to use the net proceeds of the offering to support commercialization and manufacturing for its three approved gene therapies, ZYNTEGLO, SKYSONA and LYFGENIA; and to fund working capital and other general corporate purposes.

The offering is expected to close on or about December 22, 2023.