Nuvectis Pharma Announces Pricing of $13.5 Million Public Offering of Common Stock

Rhea-AI Summary

Nuvectis Pharma (NASDAQ: NVCT) has announced the pricing of its public offering of 2,700,000 shares of common stock at $5.00 per share, expecting to raise gross proceeds of $13.5 million. The company has granted the underwriter a 30-day option to purchase up to 405,000 additional shares at the same price.

The offering is expected to close on February 6, 2025, with Lucid Capital Markets acting as the sole book runner. The proceeds will be used to advance development programs of NXP800 and NXP900, hire additional personnel, cover capital expenditures, operating costs as a public company, and other general corporate purposes.

The offering is being made pursuant to Nuvectis's shelf registration statement on Form S-3, which was declared effective by the SEC on March 29, 2023.

Positive

• Secured $13.5 million in gross proceeds through public offering
• Additional funding potential through 30-day option for 405,000 shares
• Clear allocation of funds for product development and operational growth

Negative

• Dilution of existing shareholders' value through 2.7 million new shares
• 15% potential additional dilution through underwriter's option

Insights

Financial Analyst

This $13.5M public offering by Nuvectis Pharma represents a significant capital raising event that warrants careful analysis. The pricing at $5.00 per share, representing a 28.6% discount to the current market price, signals challenging market conditions and suggests potential pressure on near-term stock performance.

The offering's structure, including a 30-day option for an additional 405K shares (effectively a 15% overallotment), is standard for biotech financings but could introduce additional dilution pressure. This capital raise will increase the outstanding shares by approximately 18%, assuming no overallotment exercise.

Strategically, this financing appears well-timed despite the dilution. Clinical-stage biotech companies typically require substantial capital for pipeline development and securing funding now provides important operational runway. The proceeds directed toward NXP800 and NXP900 development programs could potentially advance these oncology assets through critical clinical milestones.

For investors, while the immediate dilution impact is negative, the strengthened balance sheet reduces near-term financing risk and provides operational flexibility. The key metrics to monitor post-offering will be:

• Quarterly cash burn rate and runway extension
• Progress in clinical development programs
• Potential strategic partnerships or licensing deals that could validate the technology platform

The successful execution of this offering, despite challenging market conditions, suggests institutional confidence in Nuvectis's development programs, though the pricing discount indicates investors demanded a significant risk premium.

FORT LEE, N.J., Feb. 05, 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 pricing of its previously announced underwritten public offering of 2,700,000 shares of its common stock at a price of $5.00 per share, with expected gross proceeds to Nuvectis of $13.5 million. Nuvectis has also granted the underwriter a 30-day option to purchase up to 405,000 additional shares of its common stock at the public offering price, less underwriting discounts and commissions. The offering is expected to close on February 6, 2025, subject to customary closing conditions.

Lucid Capital Markets is acting 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 are being 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 preliminary 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.

The offering of these securities is being made under an effective shelf registration statement on file with the SEC. 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 timing for completion of the offering and 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

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

Nuvectis Pharma (NVCT) priced its public offering at $5.00 per share.

How many shares is NVCT offering in its February 2025 public offering?

Nuvectis Pharma is offering 2,700,000 shares of common stock, with an additional 30-day option for 405,000 shares.

How much money will NVCT raise from its February 2025 public offering?

The company expects to raise gross proceeds of $13.5 million from the offering.

What will NVCT use the proceeds from its February 2025 offering for?

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

When will NVCT's February 2025 public offering close?

The offering is expected to close on February 6, 2025, subject to customary closing conditions.