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

Rhea-AI Summary

Revolution Medicines has successfully completed a public offering of 13,225,000 shares of common stock at $20.00 per share, raising gross proceeds of $264.5 million. This includes the full exercise of an underwriters' option for an additional 1,725,000 shares. The offering, which is targeted at advancing the company’s oncology pipeline, was managed by J.P. Morgan, Cowen, and Guggenheim Securities. This offering follows a shelf registration statement filed with the SEC in March 2021.

Positive

• Gross proceeds from the offering totaled $264.5 million, enhancing financial resources.
• The capital raised can support the development of RAS-addicted cancer therapies.

Negative

• Shareholder dilution risk due to the issuance of new shares.

Underwriters’ full exercise of option brings gross proceeds to $264.5 million

REDWOOD CITY, Calif., July 22, 2022 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq: RVMD), a clinical-stage oncology company developing targeted therapies for RAS-addicted cancers, today announced the closing of an underwritten public offering of 13,225,000 shares of common stock at a public offering price of $20.00 per share, before underwriting discounts and commissions. The shares of common stock issued and sold in the offering include 1,725,000 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 $264.5 million. All shares in the offering were offered by Revolution Medicines.

J.P. Morgan, Cowen and Guggenheim Securities acted as the joint book-running managers for the offering.

A shelf registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission 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 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, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY, 11717, Attn: Prospectus Department, by telephone at (833) 297-2926 or by email at PostSaleManualRequests@broadridge.com; or Guggenheim Securities, LLC, Attn: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, 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 precision 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 July 20, 2022, and Revolution Medicines’ current and future reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed with the SEC on May 9, 2022.

Contact

David S. Arrington
SVP Investor Relations & Corporate Affairs
Revolution Medicines
650-542-6046
darrington@revmed.com

FAQ

What was the size of the public offering by Revolution Medicines?

Revolution Medicines completed a public offering of 13,225,000 shares.

What were the gross proceeds from Revolution Medicines' offering?

The gross proceeds from the offering amounted to $264.5 million.

What was the public offering price per share for RVMD?

The public offering price was $20.00 per share.

Who managed the public offering for Revolution Medicines?

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

What is the purpose of the funds raised in the RVMD offering?

The funds will support the development of targeted therapies for RAS-addicted cancers.