<SEC-DOCUMENT>0001104659-23-117194.txt : 20240122
<SEC-HEADER>0001104659-23-117194.hdr.sgml : 20240122
<ACCEPTANCE-DATETIME>20231113160515
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-23-117194
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20231113

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Entrada Therapeutics, Inc.
		CENTRAL INDEX KEY:			0001689375
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		ORGANIZATION NAME:           	03 Life Sciences
		IRS NUMBER:				813983399
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		ONE DESIGN CENTER PLACE
		STREET 2:		SUITE 17-500
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02210
		BUSINESS PHONE:		857-305-1825

	MAIL ADDRESS:	
		STREET 1:		ONE DESIGN CENTER PLACE
		STREET 2:		SUITE 17-500
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02210

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CycloPorters, Inc.
		DATE OF NAME CHANGE:	20161104
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>VIA
</U></B></FONT><B><U>EDGAR</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">November&nbsp;13, 2023</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ms.&nbsp;Mary Mast</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ms.&nbsp;Angela Connell</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Division of Corporation Finance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">U.S. Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Re: Entrada Therapeutics,&nbsp;Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><B>Form&nbsp;10-K for the Fiscal Year
Ended December&nbsp;31, 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><B>Filed March&nbsp;6, 2023</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><B>Form&nbsp;10-Q for the Six Months
Ended June&nbsp;30, 2023</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><B>Filed August&nbsp;8, 2023</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><B>File No.&nbsp;001-40969</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Ms.&nbsp;Mast and Ms.&nbsp;Connell:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On behalf of Entrada Therapeutics,&nbsp;Inc. (&ldquo;we&rdquo; or the
&ldquo;Company&rdquo;), &nbsp;we submit for filing, via direct transmission to the EDGAR system of the U.S. Securities and Exchange Commission
(the &ldquo;Commission&rdquo;), this response to the comments received from the staff (the &ldquo;Staff&rdquo;) of the Commission by letter
dated November&nbsp;1, 2023&nbsp;relating to the Company&rsquo;s Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2022&nbsp;and
the Company&rsquo;s Form&nbsp;10-Q for the quarterly period ended&nbsp;June&nbsp;30, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have reproduced below in bold the Staff&rsquo;s comment and the
Company&rsquo;s response following such comment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Form&nbsp;10-Q for the Quarterly Period ended June&nbsp;30, 2023</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Notes to Condensed Consolidated Financial Statements (Unaudited)
<BR>
13. Collaboration and License Agreements, page&nbsp;23</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>You disclose that simultaneously with the Vertex Agreement,
you entered into a Stock Purchase Agreement whereby Vertex purchased 1,618,613 shares of your common stock for $26.3 million (or $16.26
per share). You also disclose that $6.9 million of this amount was considered a share premium and included in the total transaction price.
Please provide us with your calculation of the share premium, including the quoted share price on the closing date as well as the discount
for lack of marketability assumed. Please further explain the reason for including a discount for lack of marketability in your fair value
calculation given that the shares are publicly traded. Finally, tell us your consideration of </B></FONT><B>filing the Vertex Agreement
and related Stock Purchase Agreement as exhibits.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Response:</U></FONT>
The Company acknowledges the Staff&rsquo;s comment and respectfully advises the Staff of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We considered the guidance in ASC 606-10-15-4(a)&nbsp;when evaluating
how to account for the issuance of 1,618,613 shares of the Company&rsquo;s common stock to Vertex pursuant to the Stock Purchase Agreement
that was entered into in connection with the Vertex Agreement, which we accounted for as a combined contract consistent with ASC 606-10-25-9.
Accordingly, we concluded that the fair value of the shares issued to Vertex pursuant to the Stock Purchase Agreement are excluded from
the transaction price. Therefore, the difference between the contractual price paid for the shares and the fair value of the shares, on
the closing date, is reflected as a premium and included in the transaction price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company adopted Accounting Standards Update No.&nbsp;2022-03, <I>Fair
Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions</I> effective January&nbsp;1,
2023. To determine the fair value of the shares issued to Vertex, we considered the guidance provided by ASC 820-10-35-16D, as well as
the illustrations provided by ASC 820-10-55-51 and ASC 820-10-55-52 (Case A), as amended by ASU 2022-03. The shares issued to Vertex in
the private placement transaction pursuant to the Stock Purchase Agreement were unregistered and therefore restricted securities. Restricted
securities can generally be purchased at prices substantially below those of identical but freely marketable securities due to the very
real risk of market decline inherent in holding restricted securities as well as the required holding period for unregistered equity in
a publicly traded company&rsquo;s stock. As a result, we concluded that the measurement of the fair value of the unregistered shares issued
to Vertex should be the closing price of the Company&rsquo;s common stock on February&nbsp;8, 2023, the closing or issuance date, adjusted
to reflect a discount for lack of marketability (&ldquo;DLOM&rdquo;) due to the shares issued to Vertex being unregistered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The closing price of our common stock, as reported on The Nasdaq Stock
Market, on February&nbsp;8, 2023 was $15.41 per share. We engaged a third-party valuation firm to assist in determining the DLOM. In accordance
with ASC 820-10-55-52, we considered factors that contribute to the DLOM as a result of the shares being unregistered. Based on this analysis,
we applied a 22% DLOM to the closing price of the Company&rsquo;s common stock on February&nbsp;8, 2023. Following the application of
the DLOM, as of February&nbsp;8, 2023, the estimated fair value of the shares issued to Vertex was $12.02 per share. This was $4.24 per
share lower than the $16.26 per share that Vertex paid. The difference of $4.24 per share, multiplied by the number of shares issued or
1,618,613, resulted in a $6.9 million share premium as of the closing date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company undertakes to expand its disclosure in subsequent filings
to clarify that the $6.9 million share premium is due to the difference between the price paid by Vertex and the fair value of the Company&rsquo;s
common stock on the closing date with a DLOM applied due to the shares being unregistered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Finally,
we considered</FONT> the Vertex Agreement and related Stock Purchase Agreement and filed each, as Exhibit&nbsp;10.16 in our Annual Report
on Form&nbsp;10-K filed with the Commission on March&nbsp;6, 2023 and Exhibit&nbsp;10.1 in our Current Report on Form&nbsp;8-K filed with
the Commission on December&nbsp;9, 2022, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you have any questions about this response, please contact the undersigned
through email on file or at (857) 520-9158.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">Entrada Therapeutics,&nbsp;Inc.</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%">By:&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 48%">/s/ Kory Wentworth</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">Name: Kory Wentworth</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">Title: Chief Financial Officer</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  </TABLE>


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