Elevation Oncology tumbles on $50 mln stock-and-warrants deal

Elevation Oncology

09/06/2023 11:25

** Elevation Oncology Inc's  ELEV.O  shares tumble 26.2% to
$2.08 premarket as follow-on prices
    ** Co late Thurs announced ~22.2 mln shares, including 4.4
mln pre-funded warrants, at $2.25 for $50 mln gross raise
    ** Investors also receive accompanying warrants to buy one
additional share
    ** Offering price of $2.25 represents 20.2% discount to
stock's last close
    ** Co has 24.3 mln shares outstanding, per Refinitiv data
    ** Elevation plans to use net offering proceeds to fund
clinical development of lead product candidate EO-3021, an
antibody drug conjugate (ADC)
    ** On May 26, ELEV jumped 67% to close at $5.02 with TD
Cowen analysts saying data disclosed in American Society of
Clinical Oncology (ASCO) abstract including gastric cancer ORR
(objective response rate) of 47% is "highly impressive and
provides meaningful valuation for EO-3021"
    ** SVB Securities and TD Cowen acting as jt bookrunners for
equity offering
    ** ELEV ended 2022 at $0.95

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))