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 (Nasdaq: RVMD) announced the closing of a public offering of 6,900,000 shares at $26.00 each, generating gross proceeds of $179.4 million before deductions. The offering included 900,000 additional shares purchased by underwriters. The funds are expected to support the company’s focus on developing targeted cancer therapies, specifically those targeting RAS and mTOR pathways. J.P. Morgan, Cowen, SVB Leerink, and Guggenheim Securities managed the offering.

Positive

• Gross proceeds of $179.4 million to support targeted cancer therapy development.
• Focus on high-value cancer targets, including RAS and mTOR pathways.

Negative

• Dilution risk for existing shareholders due to the new share issuance.

REDWOOD CITY, Calif., July 13, 2020 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq:RVMD), a clinical-stage oncology company focused on developing targeted therapies to inhibit elusive frontier targets within notorious cancer pathways, today announced the closing of an underwritten public offering of 6,900,000 shares of common stock at a public offering price of $26.00 per share, before underwriting discounts and commissions. The shares of common stock issued and sold in the offering include 900,000 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 $179.4 million. All shares in the offering were offered by Revolution Medicines.

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

A registration statement relating to the shares sold in this offering was declared effective by the Securities and Exchange Commission on July 8, 2020. The offering was made only by means of a prospectus, copies of which may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or 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 email at PostSaleManualRequests@broadridge.com or by telephone at (833) 297-2926; SVB Leerink LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA, 02110, by telephone at 1-800-808-7525, ext. 6218, or by email at syndicate@svbleerink.com; or Guggenheim Securities, LLC, Attention: 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

Revolution Medicines is a clinical-stage oncology company focused on developing novel targeted therapies to inhibit elusive high-value frontier cancer targets within notorious growth and survival pathways, with particular emphasis on RAS and mTOR signaling pathways. The company possesses sophisticated structure-based drug discovery capabilities built upon deep chemical biology and cancer pharmacology know-how and innovative, proprietary technologies that enable the creation of small molecules tailored to unconventional binding sites.

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 the business of the Company in general, see Revolution Medicines’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 14, 2020, the prospectus for this offering filed with the SEC on July 9, 2020, and its future periodic reports to be filed with the SEC.

Contacts

Vida Strategic Partners

Stephanie Diaz (Investors)
415-675-7401


Tim Brons (Media)
415-675-7402

FAQ

What is the public offering price of Revolution Medicines' stock offering?

The public offering price was $26.00 per share.

How many shares did Revolution Medicines offer in its recent public offering?

Revolution Medicines offered a total of 6,900,000 shares.

What were the gross proceeds from Revolution Medicines' stock offering?

The gross proceeds were $179.4 million before deductions.

Who managed the public offering for Revolution Medicines?

The offering was managed by J.P. Morgan, Cowen, SVB Leerink, and Guggenheim Securities.

What is the intended use of the funds raised from the offering by RVMD?

The funds will support the development of targeted cancer therapies.