Arcus Biosciences Closes Stock Sale Of 16,428,572 Shares, Underwriters Take Full Extra Option
The cancer-drug developer netted about $269.7 million after the underwriters exercised their option in full when the deal closed Friday.
Arcus Biosciences, a late clinical-stage drugmaker, closed its public stock offering on Friday after selling 16,428,572 shares, the company said in an 8-K. The underwriters exercised their extra-share option in full, and net proceeds came to about $269.7 million.
How the 16.4 million shares add up
The underwriting agreement, dated Wednesday, covered 14,285,715 shares at a public offering price of $17.50. The underwriters agreed to buy them from Arcus at $16.45 per share.
The agreement also gave the underwriters a 30-day option on up to 2,142,857 more shares at the offering price, less underwriting discounts and commissions. They took all of it at closing, which brings the total to 16,428,572 shares.
A pricing announcement put expected gross proceeds at $250.0 million for the 14,285,715 firm shares, before the option. The $269.7 million net figure is after underwriting discounts, commissions and estimated offering expenses.
Jefferies, Leerink Partners and TD Securities (USA) were the representatives of the underwriters.
A cancer pipeline with no approved drug
Arcus launched the offering on Wednesday. The company develops small-molecule and antibody drugs for cancer and for inflammatory and autoimmune diseases, and it has no approved products.
Its most advanced drugs are in late-stage studies: casdatifan for clear cell renal cell carcinoma, a kidney cancer; quemliclustat for metastatic pancreatic cancer; and domvanalimab for non-small cell lung cancer. Gilead holds licenses and options on several programs, and Taiho holds rights in Japan and certain other Asian countries.
Limits on further share sales
Arcus agreed not to sell or issue substantially similar securities for 60 days after the date of the prospectus without the underwriters' consent. Exceptions include issuances under existing equity plans.
Its equity distribution agreement with Leerink Partners permits no sales under that program until 30 calendar days after the underwriting agreement date.
The 60-day lock-up on similar share issuance runs from the prospectus date, while sales under the Leerink program are barred for 30 calendar days after the underwriting agreement date.
Sources
- 8-K Filing — Arcus Biosciences, Inc. (RCUS) — SEC EDGAR
- Exhibit a8kex11.htm — Arcus Biosciences, Inc. 8-K exhibit — SEC EDGAR
- Arcus Biosciences Announces Pricing of $250 Million Public Offering of Common Stock — Yahoo Finance
- Arcus Biosciences Announces Commencement of Public Offering of Common Stock — businesswire.com
