Kura Oncology Announces Commencement of Public Offering of Common Stock

Rhea-AI Summary

Kura Oncology has announced the commencement of an underwritten public offering of its common stock. The offering is subject to market and other conditions, with the potential for underwriters to purchase an additional 15% of shares. This move follows Kura's effective shelf registration statement, providing for a streamlined public offering process.

SVB Leerink, Cowen, and Credit Suisse are acting as joint bookrunning managers. The exact size and terms of the offering remain uncertain, emphasizing significant market conditions.

Positive

• Potential for additional capital influx from the public offering to support clinical development.
• Experienced underwriters (SVB Leerink, Cowen, Credit Suisse) managing the offering.

Negative

• Public offering may lead to shareholder dilution.
• Uncertainty regarding the completion and terms of the offering could affect stock price.

SAN DIEGO, May 05, 2020 (GLOBE NEWSWIRE) -- Kura Oncology, Inc. (Nasdaq: KURA), a clinical-stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer, today announced that it has commenced an underwritten public offering, subject to market and other conditions, to issue and sell shares of its common stock.  In connection with the offering, Kura expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering.  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.

SVB Leerink, Cowen and Credit Suisse are acting as joint bookrunning managers in the offering.

The securities described above are being offered by Kura pursuant to a shelf registration statement on Form S-3, including a base prospectus, that was previously filed by Kura with the Securities and Exchange Commission (the “SEC”) and that was declared effective on August 28, 2019.  A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available for free on the SEC’s website located at http://www.sec.gov.  Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering, when available, may be obtained from: SVB Leerink LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, by telephone at (800) 808-7525, ext. 6218, or by email at syndicate@svbleerink.com; Cowen and Company, LLC c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at PostSaleManualRequests@broadridge.com, or by phone at (833) 297-2926; or Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, Eleven Madison Avenue, 3^rd Floor, New York, NY 10010, or by telephone at (800) 221-1037, or by email at usa.prospectus@credit-suisse.com.

This press release shall not constitute an offer to sell or the 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 Kura Oncology

Kura Oncology is a clinical-stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer. Kura’s pipeline consists of two wholly-owned small molecule drug candidates that target cancer signaling pathways where there is a strong scientific and clinical rationale to improve outcomes by identifying those patients most likely to benefit from treatment. Kura’s most advanced drug candidate is tipifarnib, a potent, selective and orally bioavailable farnesyl transferase inhibitor currently in a registration-directed trial in patients with recurrent or metastatic HRAS mutant head and neck squamous cell carcinoma (HNSCC). Kura’s pipeline is also highlighted by KO-539, a potentially first-in-class, potent and selective inhibitor of the menin-MLL protein-protein interaction currently in a Phase 1/2A clinical trial in patients with relapsed/refractory AML.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements include, without limitation, statements about Kura’s expectations regarding the completion and timing of the proposed offering, and its expectations with respect to granting the underwriters a 30-day option to purchase additional shares. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Kura’s current expectations and involve assumptions that may never materialize or may prove to be incorrect.  Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks associated with market conditions and the satisfaction of closing conditions related to the proposed public offering, risks and uncertainties associated with Kura’s business and finances in general, risks associated with the COVID-19 global pandemic, and the other risks described in Kura’s quarterly report on Form 10-Q for the quarterly period ended March 31, 2020 and other filings with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Kura undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Contacts

Company:
Pete De Spain
Vice President, Investor Relations &
Corporate Communications
(858) 500-8803
pete@kuraoncology.com

Investors:
Robert H. Uhl
Managing Director
Westwicke ICR
(858) 356-5932
robert.uhl@westwicke.com

Media:
Jason Spark
Managing Director
Canale Communications
(619) 849-6005
jason@canalecomm.com

FAQ

What is the purpose of Kura's public offering?

Kura's public offering aims to raise capital to support clinical development and operational needs.

What is the size of Kura's public offering?

The specific size of Kura's public offering has not been disclosed in the press release.

Who are the underwriters for Kura's offering?

SVB Leerink, Cowen, and Credit Suisse are serving as joint bookrunning managers for the offering.

What does the 30-day option for underwriters mean?

The 30-day option allows underwriters to purchase up to 15% more shares, enhancing their ability to meet demand.

How could the public offering impact Kura's stock price?

The offering may lead to shareholder dilution and uncertainty, potentially affecting the stock's performance.