Verrica Pharma slides on $32.5 mln stock offering

Verrica Pharmaceuticals

21/02/2023 13:46

** Verrica Pharmaceuticals Inc's  VRCA.O  shares down 11% at
$7.05 before the bell as co raises equity
    ** Dermatology therapeutics firm offers 4.8 mln shares,
including ~4.1 mln pre-funded warrants, for $32.5 mln raise with
Jefferies as sole bookrunner
    ** Offering price of $6.75 represents 14.8% discount to
stock's last sale on Fri
    ** Co plans to use net proceeds to help fund continued R&D
of its product candidates
    ** Alongside offering, co says it had ~$34.3 mln of cash and
equivalents as of Dec 31
    ** Last month, Verrica resubmitted marketing application for
its treatment for viral skin disease known as molluscum
contagiosum
    ** In May 2022, U.S. FDA declined to approve the treatment,
citing deficiencies at a plant by its contract manufacturer
    ** Co has ~41.1 mln shares outstanding and ~19.3 mln shares
of public float, per Refinitiv
    ** Through Fri close, VRCA shares have rallied 188% to start
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))