Rhythm Pharma raises $150M in convertible preferred stock; conversion at $48 (19% premium)

RHYTHM PHARMACEUTICALS, INC.

$150M gross proceeds from sale of Series A Convertible Preferred Stock to Perceptive and other existing shareholders.
Initial conversion price of $48 per share, representing a 19% premium to the 10-day VWAP.
Cash runway extended into 2026; includes existing cash and net proceeds from the offering.
Preferred stock pays 6% cumulative annual dividend starting year 2, payable PIK or cash at company's option.
Convertible after HSR waiting period; company can force conversion if stock >250% of conversion price for 20 of 30 days.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

RHYTHM PHARMACEUTICALS, INC. entered into Investment Agreement with certain affiliates of Perceptive Advisors LLC and certain other investors valued at $150,000,000 (effective 2024-04-01).

Action: entry
Agreement: equity purchase
Counterparty: certain affiliates of Perceptive Advisors LLC and certain other investors
Value: $150,000,000
Effective: 2024-04-01

Exact text from the filing

On April 1, 2024, Rhythm Pharmaceuticals, Inc., a Delaware corporation (the “Company”), entered into an Investment Agreement (the “Investment Agreement”) with certain affiliates of Perceptive Advisors LLC (“Perceptive”) and certain other investors (each, an “Investor” and collectively, the “Investors”), relating to the issuance and sale of 150,000 shares of a new series of the Company’s Series A Convertible Preferred Stock, par value $0.001 per share, titled the “Series A Convertible Preferred Stock” (the “Convertible Preferred Stock”), for an aggregate purchase price of $150,000,000, or $1,000 per share (the “Issuance”).

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RHYTHM PHARMACEUTICALS, INC. filing history →

Source: SEC EDGAR

accession 0001104659-24-041970

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