Milestone Pharmaceuticals Inc. (NASDAQ:MIST), a pharmaceutical company specializing in cardiovascular treatments with a market capitalization of $155.39 million, has amended its sales agreement with Jefferies LLC, effectively increasing its common shares offering to $77.8 million. This adjustment includes the $2.8 million of sales previously made under the original agreement. According to Investing Pro data, the company’s stock has shown remarkable momentum with a 33.15% return over the past week.
On Monday, the company revised its 2020 agreement with the financial services firm, which now allows Milestone (WA:MMD) to issue and sell shares at its discretion through Jefferies. The sales may occur on The Nasdaq Global Select Market or any other recognized trading platform for the shares. The company has the option to instruct Jefferies on the timing, amount, and pricing of the sales. With an EBITDA of -$42 million in the last twelve months, this move appears strategic for strengthening the company’s cash position.
Jefferies will receive a commission of 3.0% on the gross proceeds from the sale of shares under this agreement. Additionally, Milestone has agreed to reimburse Jefferies for certain legal expenses up to specified limits.
The new agreement comes into effect with the filing of a prospectus supplement related to Milestone’s existing shelf registration statement. This expanded financial maneuverability will conclude either with the sale of all common shares under the agreement or if the agreement is terminated by either party.
Milestone Pharmaceuticals, headquartered in Montreal, Quebec, focuses on developing therapies for cardiovascular diseases. The company’s decision to increase its offering size reflects its ongoing efforts to strengthen its financial position and support its operational and development strategies.
This report is based on a press release statement and the information disclosed in the SEC filing by Milestone Pharmaceuticals Inc.
In other recent news, Milestone Pharmaceuticals is preparing for a potential mid-2025 launch of its lead product, CARDAMYST, a nasal spray for treating paroxysmal supraventricular tachycardia (PSVT). The U.S. Food and Drug Administration (FDA) has set a target action date of March 27, 2025, for the New Drug Application of CARDAMYST.
Milestone has received a Notice of Allowance from the United States Patent and Trademark Office for a new patent related to CARDAMYST, potentially extending intellectual property protection until July 2042. H.C. Wainwright has reiterated a Buy rating on Milestone Pharmaceuticals, maintaining a price target of $25.00, based on the anticipated approval and launch of CARDAMYST. The firm highlights the potential of CARDAMYST to generate revenues exceeding $1 billion, considering its application in both PSVT and atrial fibrillation with rapid ventricular rate (AFib-RVR). Milestone plans to initiate a Phase 3 pivotal trial for AFib-RVR in the first half of 2025. In preparation for the launch, Milestone is strengthening its commercial capabilities, including appointing Jeff Moore as VP of Sales and assembling a team to target healthcare professionals in cardiac care. An investor event is scheduled for February 2025 to outline the company’s commercial strategy for CARDAMYST.
