CymaBay Therapeutics jumps on pricing upsized stock offering at premium

CymaBay Therapeutics

24/01/2023 13:13

** CymaBay Therapeutics Inc's  CBAY.O  shares up 10.4% at
$7.30 before the bell as co raises more equity than planned at a
premium
    ** Liver disease specialist sells ~12.1 mln shares,
including ~2.1 mln warrants in lieu of shares, at $7 for ~$85
mln gross raise  urn:newsml:reuters.com:*:nGNX1LwWlC
    ** Sources say co marketed $60 mln deal size upon launch
late Mon off stock's last close of $6.61
    ** Co says plans to use net offering proceeds to fund
ongoing development of drug candidate, seladelpar, including
"clinical trials targeting market expansion"
    ** CBAY has ~84.7 mln shares outstanding for $560 mln market
cap
    ** Earlier this month, CBAY entered into collaboration and
licensing agreement with Japan's Kaken Pharmaceutical Co Ltd
 4521.T  and received $35 mln upfront payment
    ** At end-Sept, CBAY had ~$153 mln of cash/cash equivalents,
per prospectus filing
    ** CBAY's stock up ~5% to start 2023, and has roughly
doubled over the past three months through Mon
    ** Piper Sandler, Raymond James and Cantor Fitzgerald jt
bookrunners for offering
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))