IDEAYA Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

IDEAYA Biosciences (NASDAQ: IDYA) has announced its intention to conduct an underwritten public offering of common stock, aiming to raise up to $150 million. The offering will also include a 30-day option for underwriters to purchase an additional $22.5 million in shares. The offering's completion is subject to market conditions, and no assurance is provided regarding its final terms. Leading the offering are J.P. Morgan, Jefferies, and Citigroup as joint book-running managers. The securities will be offered under a previously filed shelf registration statement, and a prospectus supplement will be available on the SEC's website. This press release serves as a preliminary notice and does not constitute a sale offer.

Positive

• Intended offering of up to $150 million may provide necessary capital for ongoing projects.
• Inclusion of a 30-day option for underwriters to purchase additional shares could enhance investor confidence.

Negative

• Potential shareholder dilution due to the public offering of common stock.

SOUTH SAN FRANCISCO, Calif., April 24, 2023 /PRNewswire/ -- IDEAYA Biosciences, Inc. (Nasdaq: IDYA) today announced that it intends to offer and sell up to $150 million of shares of its common stock in an underwritten public offering. In addition, IDEAYA intends to grant the underwriters a 30-day option to purchase up to $22.5 million of shares of its common stock. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

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

The securities described above are being offered by IDEAYA pursuant to a shelf registration statement on Form S-3 that was previously filed with and declared effective by the U.S. Securities and Exchange Commission, or the SEC. The offering will be made only by means of a written prospectus and a prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC's website. When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to these securities may also be obtained by request from: J.P. Morgan, by mail at J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 866-803-9204, or by email at prospectus-eq_fi@jpmorganchase.com; Jefferies, by mail at Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, or by telephone at 877-547-6340 or 877-821-7388, or by email at Prospectus_Department@Jefferies.com; or Citigroup, by mail at Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 1-800-831-9146, or by email at prospectus@citi.com.

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

About IDEAYA Biosciences

IDEAYA is a precision medicine oncology company committed to the discovery and development of targeted therapeutics for patient populations selected using molecular diagnostics. IDEAYA's approach integrates capabilities in identifying and validating translational biomarkers with drug discovery to select patient populations most likely to benefit from its targeted therapies. IDEAYA is applying its research and drug discovery capabilities to synthetic lethality – which represents an emerging class of precision medicine targets. 

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts contained herein, including without limitation statements regarding the offer and sale of shares, the terms of the offering are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties that could cause IDEAYA's preclinical and clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, risks and uncertainties related to market conditions and the satisfaction of closing conditions related to the proposed public offering, the uncertainties inherent in the drug development process, including IDEAYA's programs' early stage of development, the process of designing and conducting preclinical and clinical trials, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, IDEAYA's ability to successfully establish, protect and defend its intellectual property, the effects on IDEAYA's business of the worldwide COVID-19 pandemic, and other matters that could affect the sufficiency of existing cash to fund operations. IDEAYA undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of IDEAYA in general, see IDEAYA's recent Annual Report on Form 10-K filed on March 7, 2023, the preliminary prospectus supplement related to the proposed public offering and subsequent filings with the SEC.

Investor and Media Contact
IDEAYA Biosciences
Paul Stone
Senior Vice President and Chief Financial Officer
investor@ideayabio.com

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SOURCE IDEAYA Biosciences, Inc.

FAQ

What is the total amount IDEAYA Biosciences is looking to raise in its public offering?

IDEAYA Biosciences intends to raise up to $150 million in its underwritten public offering.

Who are the joint book-running managers for IDEAYA's offering?

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

What is the purpose of IDEAYA's public offering?

The proceeds from the public offering are intended to support IDEAYA's ongoing projects and operations.

Will shares sold in the offering result in shareholder dilution?

Yes, the public offering of common stock may lead to dilution for existing shareholders.

How long do underwriters have to purchase additional shares in the offering?

Underwriters have a 30-day option to purchase up to $22.5 million of additional shares.