Verastem Oncology (Nasdaq: VSTM), a biopharmaceutical company dedicated to advancing cancer treatments, has announced the pricing of its underwritten public offering. The offering consists of 13,333,334 shares of common stock along with warrants to purchase up to 13,333,334 shares, priced at $3.00 per share and accompanying warrant. Additionally, Verastem offered pre-funded warrants to certain investors for up to 5,000,000 shares of common stock, also accompanied by warrants, at $2.999 per pre-funded warrant.
The warrants, exercisable immediately at $3.50 per share, will expire 18 months from issuance, allowing holders to exercise them in full or in part through a formal notice and full payment of the exercise price. The gross proceeds, before deductions, are anticipated to reach approximately $55.0 million, with the closing scheduled for July 25, 2024, subject to customary closing conditions. All securities in the offering will be sold by Verastem Oncology.
Guggenheim Securities and Cantor are acting as joint book-running managers for the offering. Verastem intends to allocate the net proceeds towards potential launches of avutometinib and defactinib in LGSOC, ongoing clinical research and development, and general corporate purposes such as working capital and strategic investments.
For more details, prospective investors are encouraged to review the preliminary prospectus supplement and accompanying base prospectus available on the SEC’s website at www.sec.gov. This offering is conducted under a shelf registration statement declared effective by the SEC on November 20, 2023.
This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful.
About Verastem Oncology
Verastem Oncology (Nasdaq: VSTM) focuses on late-stage biopharmaceutical development aimed at improving cancer patients’ lives. The company’s pipeline targets RAS/MAPK-driven cancers with novel small molecule drugs that inhibit critical signaling pathways promoting cancer cell survival and growth, including RAF/MEK and FAK inhibition.
