Nuvectis Pharma Announces Closing of $15.5 Million Public Offering of Common Stock and Full Exercise of Underwriter’s Over-Allotment Option

Rhea-AI Summary

Nuvectis Pharma (NVCT) has successfully closed its previously announced public offering, raising $15.5 million in gross proceeds. The offering consisted of 2,700,000 shares of common stock at $5.00 per share, along with the full exercise of the underwriter's over-allotment option for an additional 405,000 shares.

Lucid Capital Markets served as the sole book runner for the offering. The company plans to use the net proceeds to advance the development programs of NXP800 and NXP900, hire additional personnel, fund capital expenditures, cover public company operating costs, and other general corporate purposes. The offering was conducted under Nuvectis's shelf registration statement on Form S-3.

Positive

• Raised $15.5 million in gross proceeds
• Full exercise of underwriter's over-allotment option indicates strong demand
• Secured funding for development of NXP800 and NXP900 programs

Negative

• Dilution of existing shareholders through issuance of 3.105 million new shares
• Share offering price of $5.00 represents potential discount to market price

Insights

Financial Analyst

This $15.5 million capital raise represents a strategic move for Nuvectis Pharma, coming at a critical juncture in their clinical development timeline. The full exercise of the over-allotment option signals robust institutional interest, despite the offering price representing a 31% discount to the current market price.

Several key aspects warrant attention:

• The offering's structure through a shelf registration (Form S-3) indicates proactive financial planning, allowing for faster market access when capital needs arise.
• The selection of Lucid Capital Markets as sole book runner suggests a targeted approach to institutional investors, potentially building a more stable long-term shareholder base.
• While the dilution impact is significant with approximately 16.3% increase in outstanding shares, the capital injection strengthens Nuvectis's position to advance its oncology pipeline without immediate financing concerns.

For a clinical-stage biotech with a $138 million market cap, this financing provides an estimated 12-18 months of operational runway, based on typical burn rates for companies at similar development stages. The timing of this raise, amidst challenging market conditions for biotech funding, demonstrates management's prudent approach to ensuring adequate capital for key clinical milestones.

FORT LEE, NJ, Feb. 07, 2025 (GLOBE NEWSWIRE) -- Nuvectis Pharma, Inc. (Nasdaq: NVCT), a clinical-stage biopharmaceutical company focused on the development of innovative precision medicines for the treatment of serious conditions of unmet medical need in oncology, today announced the closing of its previously announced underwritten public offering of 2,700,000 shares of its common stock, and the exercise in full of the underwriter’s option to purchase 405,000 additional shares. The common stock shares were offered at a price of $5.00 per share, resulting in gross proceeds to Nuvectis of approximately $15.5 million, before deducting underwriting discounts and commissions.

Lucid Capital Markets acted as the sole book runner for the offering.

Nuvectis intends to use the net proceeds from the offering to continue to advance the development programs of NXP800 and NXP900 or any future product candidate, hiring of additional personnel, capital expenditures, costs of operating as a public company and other general corporate purposes.

The securities described above were offered by Nuvectis pursuant to its shelf registration statement on Form S-3 (File No. 333-270657) with the U.S. Securities and Exchange Commission (“SEC”) on March 17, 2023 and declared effective by the SEC on March 29, 2023. The final prospectus supplement relating to and describing the terms of the offering has been filed with the SEC and is available on the SEC's web site at www.sec.gov.  Copies of the final prospectus supplement and the accompanying prospectus relating to these securities may also be obtained, when available, by contacting Lucid Capital Markets, LLC, 570 Lexington Avenue, 40^th floor, New York, NY 10022.

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 Nuvectis Pharma

Nuvectis Pharma, Inc. is a biopharmaceutical company focused on the development of innovative precision medicines for the treatment of serious conditions of unmet medical need in oncology. The Company is currently developing two clinical-stage drug candidates, NXP800 and NXP900. NXP800 is an oral small molecule GCN2 activator currently in a Phase 1b clinical trial for the treatment for platinum resistant, ARID1a-mutated ovarian carcinoma and in an Investigator-sponsored clinical trial for the treatment of cholangiocarcinoma. NXP900 is an oral small molecule inhibitor of the SRC Family of Kinases (SFK), including SRC and YES1. NXP900 has a unique mechanism of action in that it inhibits both the catalytic and scaffolding functions of the SRC kinase thereby providing complete shutdown of the signaling pathway. NXP900 is currently in a Phase 1a dose escalation study.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties, including statements regarding the expected and intended use of proceeds from the offering. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including statements regarding the intended. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” "project,” “target,” “aim,” “should,” “will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Nuvectis Pharma, Inc.'s current expectations, including safety and efficacy data generated to date for NXP800 and NXP900, estimates, and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy, and financial needs. The outcome of the events described in these forward-looking statements are subject to inherent uncertainties, risks, assumptions, market and other conditions, and other factors that are difficult to predict and include statements and data regarding the preclinical studies for NXP800 and NXP900, and the Phase 1a data for NXP800 and the NXP900 Phase 1a study to date, as well as the clinical expectations for the ongoing NXP800 Phase 1b study in platinum-resistant, ARID1a-mutated ovarian carcinoma, including the potential ability of a higher dose intensity going forward in the NXP800 Phase 1b study to generate satisfactory safety and efficacy results, statements regarding NXP800's potential ability to become a therapeutic option for the treatment of platinum-resistant, ARID1a-mutated ovarian carcinoma, cholangiocarcinoma, and potentially other cancer indications, and the timing for completion of the clinical trials, including the ongoing NXP800 investigator-initiated study in cholangiocarcinoma and statements regarding NXP900's therapeutic potential and the expected timing for the start of the NXP900 Phase 1b program. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are subject to market and other conditions and described more fully in the section titled “Risk Factors” in our 3Q 2024 Form 10-Q and our other public filings with the Securities and Exchange Commission (“SEC”). However, these risks are not exhaustive and new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release or other filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Company Contact

Ron Bentsur
Chairman, Chief Executive Officer and President
Tel: 201-614-3151
rbentsur@nuvectis.com

Media Relations Contact

Christopher M. Calabrese
LifeSci Advisors
Tel: 917-680-5608
ccalabrese@lifesciadvisors.com 

FAQ

How much did Nuvectis Pharma (NVCT) raise in its February 2025 public offering?

Nuvectis Pharma raised $15.5 million in gross proceeds through the public offering of common stock.

How many shares did NVCT issue in its February 2025 offering?

NVCT issued a total of 3,105,000 shares, consisting of 2,700,000 initial shares plus 405,000 additional shares through the over-allotment option.

What was the share price for NVCT's February 2025 public offering?

The shares were offered at a price of $5.00 per share.

How will NVCT use the proceeds from its February 2025 offering?

The proceeds will be used to advance NXP800 and NXP900 development programs, hire personnel, fund capital expenditures, cover public company costs, and other general corporate purposes.

Who was the underwriter for NVCT's February 2025 public offering?

Lucid Capital Markets acted as the sole book runner for the offering.