NEW YORK – Redwood City, California-based Revolution Medicines on Wednesday after the close of the market said it would offer 5,797,101 shares of its common stock at an offering price of $45 per share.
Additionally, the company has offered underwriters a 30-day option to purchase an additional 869,565 shares of common stock at the public offering price. The precision oncology-focused firm is expecting the offering to bring in gross proceeds of around $260.9 million, not factoring in the underwriters' option to purchase additional shares.
JP Morgan, Cowen, SVB Leerink, and Guggenheim Securities are joint book-running managers for the offering.
Revolution announced the proposed offering on Feb. 2 and said it hoped to raise approximately $158 million in net proceeds from a public offering of 4,000,000 shares of its common stock at $42.14 per share, the last reported stock price on the Nasdaq on Jan. 29.Â
The company expects the offering will close on Feb. 8. The firm plans to use the funds, along with its existing cash, cash equivalents and marketable securities, to advance certain RAS(ON) inhibitor and RAS companion inhibitor programs, as well as for general corporate and operating expenses.Â
In Thursday morning trade on the Nasdaq, shares of Revolution Medicines were up around 6 percent at $49.31