10:40 AM EDT, 04/01/2024 (MT Newswires) -- Rhythm Pharmaceuticals ( RYTM ) said Monday it agreed to sell series A convertible preferred stock to certain shareholders for $150 million in gross proceeds.

The investors were led by Perceptive Advisors, its Discovery Fund and an institutional investor focused on life sciences, the company said.

Proceeds will be used for clinical development programs, commercialization activities, working capital and general corporate purposes, Rhythm said.

The sale is expected to close around April 15, and the proceeds, along with cash, cash equivalents and short-term investments as of Dec. 31, will be sufficient to fund operating expenses and capital expenditure requirements into 2026, the company said.

Shares of the company fell 3% in recent trading.

Price: 42.03, Change: -1.31, Percent Change: -3.01