Revolution Medicines Announces Closing of Public Offering of Common Stock and Full Exercise of Underwriters' Option to Purchase Additional Shares

Rhea-AI Summary

Revolution Medicines, Inc. (Nasdaq: RVMD) has successfully closed an underwritten public offering, raising $345 million by selling 15,681,818 shares of common stock at a price of $22.00 per share. The underwriters fully exercised their option to purchase additional shares, contributing 2,045,454 shares to the total. The offering was managed by J.P. Morgan, TD Cowen, SVB Securities, and Guggenheim Securities. The registration statement was filed on March 2, 2021, and this transaction is crucial for funding the company's research and development of targeted therapies for RAS-addicted cancers.

Positive

• Gross proceeds of $345 million will support R&D initiatives.
• Underwriters' full exercise of option indicates strong market demand.

Negative

• Dilution of existing shareholders due to the issuance of new shares.

Underwriters’ full exercise of option brings gross proceeds to $345.0 million

REDWOOD CITY, Calif., March 07, 2023 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq: RVMD), a clinical-stage oncology company developing targeted therapies for RAS-addicted cancers, today announced the closing of its underwritten public offering of 15,681,818 shares of common stock at a public offering price of $22.00 per share, before underwriting discounts and commissions. The shares of common stock issued and sold in the offering include 2,045,454 shares issued upon exercise in full by the underwriters of their option to purchase additional shares of common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Revolution Medicines, were $345.0 million. All shares in the offering were offered by Revolution Medicines.

J.P. Morgan, TD Cowen, SVB Securities and Guggenheim Securities acted as the joint book-running managers for the offering. UBS Investment Bank acted as lead manager.

A shelf registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (SEC) on March 2, 2021, and automatically became effective upon filing. This offering was made solely by means of a prospectus. A copy of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, a copy of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained by contacting: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204 or by email at prospectus-eq_fi@jpmchase.com; Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, by email at Prospectus_ECM@cowen.com or by telephone at (833) 297-2926; SVB Securities LLC, 53 State Street, 40th Floor, Boston, MA 02109, Attention: Syndicate Department, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@svbsecurities.com; or: Guggenheim Securities, LLC Attention: Equity Syndicate Department, 330 Madison Avenue, New York, NY 10017 or by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.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 Revolution Medicines, Inc.

Revolution Medicines is a clinical-stage oncology company developing novel targeted therapies for RAS-addicted cancers. The company’s R&D pipeline comprises RAS(ON) Inhibitors designed to suppress diverse oncogenic variants of RAS proteins, and RAS Companion Inhibitors for use in combination treatment strategies.

Forward Looking Statements

To the extent that statements contained in this press release are not descriptions of historical facts regarding Revolution Medicines, they 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 risks and uncertainties, including, without limitation, risks and uncertainties related to market conditions. Such forward-looking statements involve substantial risks and uncertainties that relate to future events, and the actual results could differ significantly from those expressed or implied by the forward-looking statements. Revolution Medicines undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties relating to Revolution Medicines’ business in general, see the prospectus supplement related to the public offering, filed with the SEC on March 3, 2023, and Revolution Medicines’ current and future reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 27, 2023.

FAQ

What is the amount raised in Revolution Medicines' recent public offering?

Revolution Medicines raised a total of $345 million from its recent public offering.

How many shares were sold in Revolution Medicines' offering?

The company sold 15,681,818 shares of common stock.

What was the public offering price for the shares sold by Revolution Medicines?

The shares were sold at a public offering price of $22.00 per share.

What will the proceeds from the offering be used for?

The proceeds will be used to fund research and development of targeted therapies for RAS-addicted cancers.

Who managed the underwritten public offering for Revolution Medicines?

J.P. Morgan, TD Cowen, SVB Securities, and Guggenheim Securities acted as joint book-running managers.