Lexeo Therapeutics agrees to $80 million private placement at $2.8825 per share

Lexeo Therapeutics, Inc. (Nasdaq: LXEO) said on May 27, 2025 that it agreed to sell common stock and warrants to a group of institutional and healthcare investors in a private placement. The New York company expects gross proceeds of approximately $80 million before offering expenses. The deal was expected to close on May 28, 2025, subject to customary closing conditions.

What investors receive

Lexeo will issue 20,790,120 shares of common stock, or pre-funded warrants for 6,963,556 shares for investors who take that form. Each share or pre-funded warrant comes with a common warrant to buy one-half of a share. The purchase price is $2.8825 for each share and accompanying warrant, or $2.8824 for each pre-funded warrant and accompanying warrant. Pre-funded warrants have an exercise price of $0.0001 per share until exercised in full.

The common warrants have an exercise price of $2.82 per share and expire on May 28, 2029. That exercise price is below the $2.8825 purchase price. The company agreed to file a registration statement to register the resale of the shares and the shares underlying the warrants. The securities have not been registered under the Securities Act of 1933, so they cannot be offered in the United States without registration or an exemption.

The company says the deal was priced to meet the Nasdaq minimum price requirement under Nasdaq rules. The release does not say how the price compares with the stock's trading level before the announcement.

Investors and placement agents

Frazier Life Sciences and Janus Henderson Investors co-led the private placement, with participation from new and existing investors. The release names Adar1 Capital Management, Affinity Healthcare Fund, LP, Ally Bridge Group, Coastlands Capital, Surveyor Capital, a Citadel company, Vestal Point Capital and Woodline Partners LP as participants.

J.P. Morgan and Oppenheimer & Co. acted as co-lead placement agents for the transaction, and Baird acted as a placement agent. The release does not name counsel for the company or for the placement agents.

Cash runway and use of proceeds

Lexeo says the proceeds, combined with its current cash, cash equivalents and marketable securities, are expected to fund its operating and capital expenditures into 2028. It intends to use the net proceeds to advance ongoing clinical stage programs and for working capital and general corporate purposes.

The release gives no cash balance, so the runway cannot be checked against a reported figure in the release itself. Chief executive R. Nolan Townsend said the financing will let the company build on its leadership in cardiac genetic medicines. He also said the company believes it is well positioned to accelerate development of its programs.

The pipeline and what the release leaves out

The release describes Lexeo as a clinical-stage genetic medicine company based in New York City. Its lead programs are LX2006, for Friedreich ataxia cardiomyopathy, and LX2020, for plakophilin-2 arrhythmogenic cardiomyopathy. The company also refers to other candidates for diseases with high unmet need.

The release gives no clinical results for LX2006 or LX2020. Its own forward-looking statement warns of an unpredictable relationship between preclinical study results and clinical study results, and of possible delays in regulatory filings or failure to receive regulatory approval. The company's annual report for 2024, filed March 24, 2025, and its quarterly report for the first quarter of 2025, filed May 12, 2025 as amended, carry the detailed risk discussion that the release points to.

The company says a potential efficacy readout for LX2006 in 2027 falls within the runway it describes. That readout is a company expectation, and the release does not give a trial design or endpoint for it.

Report an error

Companies in this story

LXEOLexeo Therapeutics, Inc.NASDAQ · United StatesOpen the starter desk