Humacyte Inc. (NASDAQ:HUMA) shares fell 17% on Tuesday after the biotechnology company revealed plans for a $60 million registered direct offering, sparking investor concerns over share dilution.
The commercial-stage biotech firm, which develops universally implantable bioengineered human tissues, said it had entered into a securities purchase agreement with a group of institutional investors to sell 28,436,018 shares of common stock along with warrants to purchase an equal number of shares. Both the stock and warrants were priced at $2.11 per share.
According to the company, the warrants will become exercisable 180 days after issuance, feature an exercise price of $2.11, and will expire on April 7, 2031. The deal — described by Humacyte as oversubscribed — is expected to close around October 8, 2025, pending standard closing conditions.
D. Boral Capital LLC is acting as the exclusive placement agent for the transaction. Humacyte said it plans to use the gross proceeds of roughly $60 million for general corporate purposes, after accounting for fees and offering-related expenses.
The steep share decline underscores investor unease about dilution risk, as the offering represents a major expansion of the company’s share count. Humacyte’s stock, which ended the prior session at $2.48, tumbled immediately after the financing announcement.
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