GNI Group (TYO:2160) core subsidiary Gyre Therapeutics has priced a public offering of 2.22 million common shares at $9.00 per share, aiming to raise approximately $20 million before underwriting discounts and other expenses.

The proceeds from this offering, combined with existing cash and operational cash flow, are earmarked mainly to advance the Phase 2 clinical trial of F351 for liver fibrosis caused by MASH in the United States, according to its filing last Friday.

This public offering, including an overallotment option for an additional 333,333 shares, is expected to close on May 27.

While the number of outstanding shares may increase by up to 2.56 million shares, potentially diluting GNI Group's ownership from approximately 83.03% to 80.69%, this will not alter the scope of consolidation.

In a separate filing, the group said Gyre Therapeutics has met the primary endpoint in a pivotal Phase 3 clinical trial in China, demonstrating the efficacy and safety of F351 (Hydronidone) for treating liver fibrosis in chronic hepatitis B (CHB) patients.