GH Research Announces $150 Million Public Offering

GH Research PLC (Nasdaq: GHRS), a clinical-stage biopharmaceutical company dedicated to transforming the lives of patients by developing a practice-changing treatment in depression, today announced the pricing of its underwritten public offering in the United States of $150 million of ordinary shares. All of the ordinary shares are being offered by GH Research PLC. In addition, GH Research PLC has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 ordinary shares at the public offering price, less underwriting discounts and commissions.

Cantor, Stifel, and RBC Capital Markets are acting as joint book-running managers for the offering. Canaccord Genuity and Citizens JMP are acting as co-lead managers for the offering. A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective on March 17, 2023. Copies of the registration statement can be accessed through the SEC's website free of charge at www.sec.gov. A preliminary prospectus supplement and an accompanying prospectus relating to and describing the terms of the offering were filed with the SEC and are available free of charge by visiting EDGAR on the SEC’s website free of charge at www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus related to the offering can be accessed through the SEC's website free of charge at www.sec.gov or obtained free of charge from any of the joint book-running managers for the offering.

GH Research's announcement of a $150 million public offering, with a potential additional $22.5 million overallotment, represents a significant capital raise that warrants careful analysis. The offering size is particularly noteworthy, constituting approximately 28.7% of the company's current market capitalization, suggesting a substantial dilution for existing shareholders. The timing and size of this offering reveal several key insights:

1. Accelerating Clinical Trials: The company is likely seeking to strengthen its financial position for advanced clinical trials in depression treatment, indicating potential acceleration of their development pipeline.
2. Validation of Potential: The involvement of prestigious underwriters (Cantor, Stifel, and RBC Capital Markets) suggests strong institutional interest and validates the company's potential.
3. Substantial Size Relative to Market Cap: The substantial size relative to market cap indicates management's confidence in their clinical programs but also implies significant near-term dilution pressure.
4. International Scope: The offering's provisions for EEA and UK investors suggest a sophisticated and international approach to capital raising, which could provide longer-term price support.

Given the company's focus on developing novel depression treatments, this capital injection could provide runway for multiple years of clinical development. However, the offering's size relative to market cap may create temporary pressure on share value due to dilution concerns. The involvement of top-tier investment banks and the international scope of the offering suggest sophisticated institutional participation, which could provide longer-term price support.



In conclusion, GH Research's $150 million public offering represents a significant capital raise that will enable the company to accelerate its clinical development pipeline and strengthen its financial position. While the offering's size may create temporary dilution pressure, the involvement of top-tier investment banks and the international scope of the offering suggest strong institutional interest and validation of the company's potential. As the offering proceeds, investors should closely monitor the company's progress and the impact of the capital raise on its share price.