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TRACON Pharmaceuticals upsizes bought deal offering of stock to $15M due to strong demand

TRACON Pharmaceuticals (NASDAQ:TCON) Inc said it has upsized its previously announced bought deal offering of common stock to $15 million from $10 million due to increased demand to advance the continued clinical development of potential cancer drug envafolimab.  The San Diego company, which utilizes a capital-efficient product development platform to develop its clinical-stage pipeline of cancer therapies, said that due to demand, the underwriter has agreed to increase the size of the public offering and purchase on a firm commitment basis of 3,926,702 shares at a price of “$3.82 per share, less underwriting discounts, and commissions.”  In addition, the company has granted the underwriter a 30-day option to purchase up to an additional 589,005 shares at the public offering price.  READ: TRACON Pharmaceuticals announces orphan drug designation for envafolimab in soft tissue sarcoma The closing of the public offering is expected to occur on or about July 26, 2021. HC Wainwright is acting as the sole book-running manager for the offering. “The gross proceeds of the offering are expected to be approximately $15 million, prior to deducting underwriting discounts, commissions and estimated offering expenses and excluding the exercise of the underwriter’s option to purchase additional shares,” said the company. TRACON said it plans to use the net proceeds to support the continued clinical development of envafolimab, as well as for working capital and general corporate purposes. Envafolimab is a novel, single-domain PD-L1 antibody that is administered by subcutaneous injection without the need for an adjuvant. Envafolimab is currently dosing in the ENVASARC pivotal Phase 2 trial in the US, sponsored by TRACON and has been accepted for priority review by the Chinese National Medical Products Administration for the treatment of High levels of MicroSatellite Instability (MSI-H) cancer patients. The company’s clinical-stage pipeline includes envafolimab; TRC102, a Phase 2 small molecule drug candidate for the treatment of lung cancer; and TJ004309, a CD73 antibody in Phase 1 development for the treatment of advanced solid tumors. Contact the author Uttara Choudhury at uttara@proactiveinvestors.com Follow her on Twitter: @UttaraProactive