Cytokinetics Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Cytokinetics (Nasdaq: CYTK) announced a public offering of 7,291,667 shares at $24.00 each, with expected gross proceeds of approximately $175 million. The offering is set to close on July 21, 2020, pending customary conditions. Additionally, underwriters have a 30-day option to purchase 1,093,750 more shares. The securities are offered under a shelf registration statement filed with the SEC. Goldman Sachs, Piper Sandler, and Cantor Fitzgerald are among the lead managers for the offering. This funding aims to support Cytokinetics' development of muscle-related treatments.

Positive

• The public offering is expected to raise approximately $175 million, providing significant funding for advancing Cytokinetics' muscle-targeted therapies.
• Potential additional funding of up to $26.25 million if underwriters exercise their option to purchase more shares.

Negative

• The issuance of new shares may lead to shareholder dilution.
• Market uncertainties may affect the offering's completion as per forward-looking statements.

SOUTH SAN FRANCISCO, Calif., July 16, 2020 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq:CYTK) today announced the pricing of an underwritten public offering of 7,291,667 shares of its common stock at a price to the public of $24.00 per share, before underwriting discounts and commissions. The gross proceeds to Cytokinetics from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Cytokinetics, are expected to be approximately $175.0 million. The offering is expected to close on July 21, 2020, subject to customary closing conditions.  Additionally, Cytokinetics has granted the underwriters a 30-day option to purchase up to an additional 1,093,750 shares of its common stock at the public offering price, less underwriting discounts and commissions.  All of the shares of common stock in the offering will be sold by Cytokinetics.

Goldman Sachs & Co. LLC, Piper Sandler & Co. and Cantor Fitzgerald & Co. are acting as joint book-running managers for the offering. Barclays Capital Inc. is acting as an additional book-running manager for the offering.  JMP Securities LLC is acting as lead co-manager, and Raymond James & Associates, Inc. and H.C. Wainwright & Co., LLC are acting as co-managers.

The securities described above are being offered by Cytokinetics pursuant to a shelf registration statement (including a prospectus) filed on November 6, 2019 with the Securities and Exchange Commission (SEC), which has become automatically effective. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed, and a final prospectus supplement and accompanying prospectus relating to the offering will be filed, with the SEC and can be accessed for free on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the offering, when available, may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by phone at (866) 471‐2526 or by email at prospectus-ny@ny.email.gs.com; Piper Sandler & Co., Attn: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, by telephone at (800) 747-3924 or by email at prospectus@psc.com; Cantor Fitzgerald & Co., Attention: Capital Markets, 499 Park Avenue, 6th Floor, New York, New York 10022, or by email: prospectus@cantor.com; or Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, via telephone: 1-888-603-5847.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Cytokinetics

Cytokinetics is a late-stage biopharmaceutical company focused on discovering, developing and commercializing first-in-class muscle activators and next-in-class muscle inhibitors as potential treatments for debilitating diseases in which muscle performance is compromised and/or declining.

Forward-Looking Statements

Certain of the statements made in this press release are forward looking, such as those, among others, relating to Cytokinetics’ expectations regarding the completion of the offering. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include, without limitation, risks and uncertainties related to market and other conditions and the satisfaction of customary closing conditions related to the public offering. There can be no assurance that Cytokinetics will be able to complete the public offering on the anticipated terms, or at all. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. Additional risks and uncertainties relating to the public offering, Cytokinetics and its business can be found under the heading “Risk Factors” in Cytokinetics’ Quarterly Report on Form 10-Q for the first quarter of 2020, which was filed on May 8, 2020, and other filings with the SEC, and in the preliminary prospectus supplement related to the public offering, filed with the SEC on July 15, 2020. Except as otherwise required by law, Cytokinetics does not undertake any obligation to update forward-looking statements and expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

Contact:
Cytokinetics
Diane Weiser
Senior Vice President, Corporate Communications & Investor Relations
(415) 290-7757

FAQ

What is the stock offering price for Cytokinetics (CYTK)?

The stock offering price for Cytokinetics is set at $24.00 per share.

How many shares is Cytokinetics (CYTK) offering?

Cytokinetics is offering 7,291,667 shares of its common stock.

When will the Cytokinetics (CYTK) public offering close?

The public offering is expected to close on July 21, 2020.

What are the expected proceeds from the Cytokinetics (CYTK) offering?

The expected gross proceeds from the offering are approximately $175 million.

Who are the underwriters for the Cytokinetics (CYTK) offering?

Goldman Sachs, Piper Sandler, and Cantor Fitzgerald are acting as joint book-running managers for the offering.