VRDN · Viridian Therapeutics, Inc.

Viridian Therapeutics executed two simultaneous capital markets transactions — a $250 million convertible notes offering and a $125 million equity offering — both closing on May 11, 2026. The convertible notes carry a low 1.75% coupon, mature in 2032, and feature an initial conversion price of ~$24.65, representing a ~45% premium to the $17.00 public offering price of the concurrent equity raise. This structure provides near-term balance sheet flexibility while minimizing immediate dilution: conversion is contingent on sustained stock performance above the threshold, and the company retains full discretion to settle conversions in cash, stock, or a combination. The $359 million in gross proceeds (net ~$359M after underwriting discounts) directly addresses near-term liquidity needs by retiring all outstanding Hercules debt — eliminating a likely higher-cost, secured obligation — and funds strategic priorities: commercial readiness for its thyroid eye disease (TED) franchise and early-stage pipeline advancement. Critically, the dual-offering structure signals strong investor demand across capital structures and de-risks execution risk, as neither offering was contingent on the other’s completion. The use-of-proceeds allocation reflects a deliberate pivot toward commercialization while preserving R&D optionality, positioning Viridian to capitalize on anticipated regulatory and commercial milestones in TED without compromising long-term innovation capacity. Given the size relative to Viridian’s market capitalization and the explicit linkage to debt retirement and key growth initiatives, this represents a material inflection point in the company’s capital strategy and operational trajectory.