Verastem sinks on $55 mln stock-and-warrants offering

Verastem

24/07/2024 11:46

** Verastem's  VSTM.O  shares down 26.2% premarket to $2.65
after biopharma firm's overnight equity offering priced
    ** VSTM shares near record intraday low of $2.60 hit earlier
this month
    ** Oncology-focused firm late Tues said sold ~13.3 mln
shares, and accompanying warrants, and pre-funded warrants to
buy 5 mln shares for $55 mln gross raise
    ** Offering price of $3 represents 16.4% discount to stock's
last sale
    ** Co plans to use net offering proceeds to fund potential
launch of avutometinib and defactinib in low-grade serous
ovarian cancer, continued R&D of product candidates, and other
purposes
    ** Co has ~25.3 mln shares outstanding and ~23.39 mln shares
of public float, per LSEG
    ** Shares have shed ~56% YTD through Tues
    ** Guggenheim and Cantor are jt bookrunners for equity
offering

 (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))