Cassava Sciences Announces Over $125 Million Raised from Warrant Distribution

Gross Proceeds from Warrants Represents the Sale of Approximately 5.7 Million Shares Of Common Stock At $22.00 Per Share

AUSTIN, Texas, May 08, 2024 (GLOBE NEWSWIRE) -- Cassava Sciences, Inc. (Nasdaq: SAVA) (the “Company”), a biotechnology company focused on Alzheimer’s disease, today announced total gross proceeds of over $125 million from cash-exercises of warrants that were previously distributed to its shareholders (the “Warrants”). Gross proceeds from the Warrants represents the issuance of approximately 5.7 million common shares at an effective price of $22.00 per share.

B. Dyson Capital Advisors served as exclusive financial advisor on the Warrant distribution.

“We are grateful to so many shareholders who continue to show support for Cassava Sciences and its mission to develop a novel drug candidate for Alzheimer’s disease,” said Remi Barbier, President and CEO. “Given the outcome of our first Warrant distribution, it could be interesting to do it again at some point in the future.”

Warrant holders had the option to cash-exercise their Warrants or to sell their Warrants on the open market. Warrant holders who opted to exercise their Warrants paid cash to the Company under the terms and conditions of a warrant agreement previously filed with the U.S. Securities and Exchange Commission (“SEC”).

“My impression is that most shareholders appreciated receiving Warrants,” said Eric Schoen, Chief Financial Officer. “Shareholders had the choice to sell their Warrants and receive cash, or to exercise their Warrants and increase their equity stake in the Company.”

Total net proceeds to Cassava Sciences from Warrants are estimated at over $123 million after deducting advisory fees and certain other expenses. The Company intends to use the net proceeds for working capital and general corporate purposes, including continued development of simufilam, the Company’s lead drug candidate for the proposed treatment of Alzheimer’s disease.

The last and final deadline to cash-exercise Warrants was May 6th, 5pm New York City time. There is no further opportunity to exercise Warrants. Any Warrants outstanding that were not validly exercised by 5:00 p.m. New York City time on May 6, 2024, were being redeemed by the Company starting on or around May 7, 2024 (the “Redemption Date”) for a nominal payment of $0.001 per warrant (the “Redemption Price”). The Redemption Price will become due and payable with respect to each outstanding warrant on the Redemption Date. All Warrants shall terminate and expire on the Redemption Date, subject to payment of the Redemption Price.