Satellos raises $57.2 million in public offering across Canada and US

Satellos Bioscience Inc. (NASDAQ: MSLE, TSX: MSCL) completed a public offering that raised approximately $57.2 million in gross proceeds before underwriting fees, the clinical-stage biotechnology company announced.

The offering consisted of 5,168,019 common shares, including 712,574 additional shares purchased through the underwriters' option, and pre-funded warrants to purchase 495,049 common shares for certain investors. Common shares were priced at $10.10 per share ($13.81 Canadian), while pre-funded warrants sold for $10.09999 per warrant ($13.80999 Canadian).

Leerink Partners, Guggenheim Securities and Oppenheimer & Co. served as joint book-running managers, with Bloom Burton Securities Inc. acting as co-manager.

The company stated it intends to use net proceeds primarily for research and development activities, working capital and general corporate purposes. This may include advancing development of SAT-3247 through clinical trials from Phase 2 to Phase 3, trials in other indications, and investment in discovery stage or pre-clinical development programs.

Franklin Berger, a company board member, purchased 24,750 common shares in the offering. The transaction qualified as a related party transaction under Canadian securities laws but was exempt from formal valuation and minority approval requirements because the value represented less than 25% of the company's market capitalization.

Satellos develops treatments for degenerative muscle diseases, with its lead candidate SAT-3247 currently in clinical development as a potential treatment for Duchenne muscular dystrophy. The oral small molecule drug targets AAK1, a protein the company identified as capable of helping restore muscle stem cell signaling.

The offering was conducted in Canada through a prospectus supplement and in the United States through a Form F-10 registration statement filed with the Securities and Exchange Commission.

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