Verastem Oncology Announces Pricing Of $55.0 Mln Offering Of Common Stock, Warrants

(RTTNews) - Verastem Oncology (VSTM) announced the pricing of an underwritten public offering of 13.33 million shares of its common stock and accompanying warrants to purchase up to 13.33 million shares of its common stock at a combined offering price to the public of $3.00 per share and accompanying warrant.

In lieu of common stock to certain investors, Verastem Oncology offered pre-funded warrants to purchase up to an aggregate of 5 million shares of its common stock and accompanying warrants to purchase up to 5 million shares of its common stock at a combined offering price to the public of $2.999 per pre-funded warrant and accompanying warrant, which represents the per share public offering price for the common stock less the $0.001 per share exercise price for each such pre-funded warrant.

The warrants have an exercise price of $3.50 per share, are exercisable immediately and will expire 18 months from the date of issuance.

The company expects gross proceeds from the offering, before deducting underwriting discounts and commissions and other estimated offering expenses payable, to be approximately $55.0 million.

The offering is expected to close on July 25, 2024, subject to customary conditions. All of the securities to be sold in the offering are to be sold by Verastem Oncology.

Guggenheim Securities and Cantor are acting as joint book-running managers for the offering.