Orchestra BioMed drops after $40 mln equity raise

Shares of Orchestra BioMed Holdings OBIO.O down 11.8% premarket to $2.70 after follow-on prices

New Hope, Pennsylvania-based firm sells 14.55 mln shares, including ~5.1 mln pre-funded warrants, for $40 mln gross proceeds

Offering price of $2.75 represents 10.1% discount to stock's last close

Co plans to use net proceeds to fund its atrioventricular interval modulation (AVIM) therapy for treatment of hypertension and its Virtue Sirolimus AngioInfusion Balloon (SAB) for treatment of atherosclerotic artery disease

Piper Sandler and TD Cowen are joint bookrunners for offering

After the bell Thurs, co said secured $70 mln of strategic investments from Ligand Pharmaceuticals LGND.O and Medtronic MDT.N

While MDT is OBIO's existing partner for AVIM, the cos amended their collaboration agreement to include potential future development of a leadless pacemaker

OBIO has ~38.6 mln shares outstanding as of Jul 30, per the prospectus, giving it roughly $118 mln market cap through Thurs

Shares of OBIO fell for third straight day on Thurs, closing down 1.9%, extending YTD loss to 23.5%

All 7 analysts covering OBIO are bullish and median PT is $12, LSEG data reflects