Cytokinetics Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Cytokinetics, Inc. (Nasdaq: CYTK) announced a public offering of 10 million shares at $27.50 per share, aiming for gross proceeds of approximately $275 million. The offering is slated to close on July 23, 2021, subject to standard conditions. Underwriters have a 30-day option to purchase an additional 1.5 million shares. J.P. Morgan and Morgan Stanley are leading the offering, with shares sold directly by Cytokinetics. The offering is conducted under a shelf registration statement filed with the SEC, ensuring compliance with securities laws.

Positive

• Gross proceeds expected to reach $275 million, enhancing financial reserves.
• The planned use of funds could support ongoing development of muscle-related therapeutics.

Negative

• Potential dilution of existing shares due to the new offering.
• Market risks and uncertainties related to the completion of the offering.

SOUTH SAN FRANCISCO, Calif., July 20, 2021 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq:CYTK) today announced the pricing of an underwritten public offering of 10,000,000 shares of its common stock at a price to the public of $27.50 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 $275 million. The offering is expected to close on July 23, 2021, subject to customary closing conditions. Additionally, Cytokinetics has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 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.

J.P. Morgan and Morgan Stanley are acting as joint book-running managers for the offering. Mizuho Securities and JMP Securities are acting as passive book-runners, and H.C. Wainwright & Co. and Needham & Company are acting as co-lead 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: J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone: 1-866-803-9204, or by email at prospectus-eq_fi@jpmchase.com; or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2^nd Floor, New York, New York 10014, by telephone at 866-718-1649 or by email at prospectus@morganstanley.com.

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 2021, which was filed on May 7, 2021, and other filings with the SEC, and in the preliminary prospectus supplement related to the public offering, filed with the SEC on July 19, 2021. 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 purpose of Cytokinetics' recent offering?

Cytokinetics is raising approximately $275 million to bolster its financial position for developing therapeutics aimed at muscle performance.

What is the pricing and size of Cytokinetics' stock offering?

Cytokinetics announced an offering of 10 million shares at a price of $27.50 per share.

When is the Cytokinetics stock offering expected to close?

The stock offering is expected to close on July 23, 2021.

Who are the underwriters for the Cytokinetics offering?

J.P. Morgan and Morgan Stanley are acting as joint book-running managers for the offering.

How might the offering affect shareholders of Cytokinetics?

The offering may result in dilution for existing shareholders, depending on market reactions and the number of shares sold.