SpringWorks Therapeutics (SWTX) Announces $225 Million Private Placement Financing

SpringWorks Therapeutics, Inc. (Nasdaq: SWTX), a clinical-stage biopharmaceutical company focused on developing life-changing medicines for patients with severe rare diseases and cancer, today announced that it has entered into a securities purchase agreement with a select group of institutional investors to issue and sell an aggregate of 8,625,520 shares of its common stock at a price per share of $26.01 in a private placement transaction (the “Financing”). SpringWorks anticipates gross proceeds from the Financing to be approximately $225 million, before deducting offering expenses. The closing of the financing is expected to occur on September 9, 2022, subject to customary closing conditions.

The Financing includes participation from new and existing institutional investors, including EcoR1 Capital, Boxer Capital, Invus, Deerfield Management, Perceptive Advisors, and another large institutional investor. Goldman Sachs & Co. LLC acted as placement agent and J.P. Morgan Securities LLC acted as structuring agent in the Financing.

“We are very pleased by the support from this high-quality group of investors as we work towards the first of our expected drug launches next year and continue to advance our diversified pipeline,” said Saqib Islam, Chief Executive Officer of SpringWorks. “These additional funds will support our mission to make a profound impact on the lives of patients with devastating cancers.”

SpringWorks intends to use the net proceeds from the Financing to support the anticipated U.S. launch of nirogacestat in patients with desmoid tumors, the advancement of the Company’s ongoing research and development programs, and for working capital and general corporate purposes. SpringWorks expects its cash, cash equivalents and marketable securities, inclusive of the equity investment pursuant to the Company’s recently announced expanded collaboration with GSK plc, to exceed $600 million upon closing of the Financing, which is expected to be sufficient to fund operating and capital expenditures into 2026. This cash estimate is a preliminary estimate based on net proceeds and information available to management as of the date of this release; actual cash on-hand may vary from this estimate.

The securities sold in the Financing are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Concurrently with the execution of the securities purchase agreement, SpringWorks and the investors entered into a registration rights agreement pursuant to which the Company has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the securities sold in the Financing.

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