DURHAM — A biotechnology company based in the Triangle has filed to raise $100 million in an initial public offering, according to a filing with the Securities and Exchange Commission.
Durham-based Precision BioSciences Inc. is a biotech company that is using genome editing to eliminate cancers, cure genetic diseases, and create safer, more productive food sources.
Upon completion of the IPO, Precision will trade on the Nasdaq under the ticker DTIL. The filing did not state what the offering price will be.
The company currently does not intend to pay dividends to any of its common stock shareholders.
Precision stated in the filing that “management will retain broad discretion” over the net proceeds from the IPO. Resources might be spent to pursue particular research programs or product candidates that are less successful or profitable as well.
The company also said it may use some of the proceeds to in-license, acquire or invest in other businesses and assets.
The company raised $88 million in a private equity offering in June 2018. The largest shareholder of Precision, according to the filing, is the venBio Global Strategic Fund LP, which owns 9.0 million shares, or 11.0 percent of Precision.
It experienced a net loss of $47.9 million in 2018 on $10.9 million in revenue. As of Dec. 31, 2018, Precision had $103,193 in cash and cash equivalents.
In the filing, Precision stated that it is “heavily dependent” on the successful development and translation of ARCUS which is still in the early stages of our product development operations.
Founded in 2006, the company is currently led by its cofounder and Chief Executive Officer Matthew Kane. He led the company since its inception in 2006 and serves on Precision’s board.
Kane has 16 years of experience in the life sciences industry and was formerly with Suros Surgical Systems, later acquired by Hologic.
He received his B.S. and M.S. from the Rose-Hulman Institute of Technology, and an MBA from Duke University.
For the 2018 fiscal year, Kane received $1,587,131 in total compensation. That included $350,000 in base salary.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Jefferies LLC and Barclays Capital Inc are the joint book-running underwriters of the IPO.
This story in from the North Carolina News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism.