VKTX Prices Offering At $1.25/Share

(RTTNews) - Viking Therapeutics Inc. (VKTX) has offered to sell 7.5 million shares of its common stock and warrants to purchase up to 7.5 million of its common stock at a price of $1.25 per share of common stock and related warrant.

The warrants have an exercise price of $1.50 per share of common stock, are exercisable immediately and will expire five years from the date of issuance. The underwriters have been granted a 45-day option to purchase up to an additional 1.125 million shares of its common stock and/or warrants to purchase up to an additional 1.125 million shares of its common stock to cover over-allotments, if any.

The gross proceeds to the company from the offering are expected to be approximately $9.375 million. At December 31, 2015, Viking had cash of $14.1 million.

The company's lead product candidate is VK5211, which is in a phase II clinical trial for patients recovering from hip fracture, an indication for which there is no currently approved therapeutics. The study is designed to enroll up to 120 patients recovering from hip fracture surgery.

Viking also expects to initiate a phase II study of VK2809 in hypercholesterolemia and fatty liver disease mid-2016.

VKTX closed Friday's trading at $1.21, down 37.31%.