Kura Oncology soars on $150 mln premium PIPE financing
24/01/2024 12:46
** Kura Oncology's KURA.O stock jumps 42% premarket to
$19.05, an 18-mth high, after co raises equity at a premium
** Co says agreed to sell 8.7 mln shares, including ~7.3 mln
pre-funded warrants, in PIPE (private investment in public
equity) for $150 mln gross proceeds
** Purchase price of $17.25 represents 28.5% premium to
stock's last close
** Financing includes participation from existing
institutional investors, including EcoR1 Capital, an affiliate
of Deerfield Management and Suvretta Capital
** Kura says plans to use net PIPE proceeds to fund R&D,
other research programs, and combined with cash and investments
are expected to fund current operations into 2027
** Co has ~74.3 mln shares outstanding for nearly $1 bln
market cap, per LSEG
** KURA shares down ~7% to start 2024 through Tues close,
after gaining ~16% in 2023
(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))