Revolution Medicines Announces Commencement of Public Offering of Common Stock

Rhea-AI Summary

Revolution Medicines (NASDAQ: RVMD) has announced a public offering of up to $200 million of common stock, with a potential additional $30 million available through underwriters. The offering is subject to market conditions, and completion is not guaranteed. The company focuses on developing targeted therapies for RAS-addicted cancers, with a pipeline that includes RAS(ON) Inhibitors and RAS Companion Inhibitors. The offering aims to fund further development of these therapies.

Positive

• The public offering aims to raise up to $200 million to support the development of targeted therapies for RAS-addicted cancers.
• The potential for an additional $30 million through underwriters indicates strong interest in the offering.

Negative

• The public offering may lead to shareholder dilution if additional shares are issued.
• There is uncertainty regarding the completion and terms of the offering due to market conditions.

REDWOOD CITY, Calif., July 19, 2022 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq: RVMD), a clinical-stage oncology company developing targeted therapies for RAS-addicted cancers, today announced that it has commenced an underwritten public offering to sell up to $200 million of shares of its common stock. All of the shares of common stock are being offered by Revolution Medicines. In addition, Revolution Medicines intends to grant the underwriters a 30-day option to purchase up to an additional $30 million of shares of common stock. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

J.P. Morgan, Cowen and Guggenheim Securities are acting as the joint book-running managers for the proposed 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 is being made solely by means of a prospectus. A copy of the preliminary prospectus supplement and the accompanying prospectus relating to this offering, when available, 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, including statements regarding completion, timing and size of the proposed public offering that involve risks and uncertainties, including, without limitation, risks and uncertainties related to market conditions and the satisfaction of closing conditions related to the proposed public offering. 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 preliminary prospectus supplement related to the proposed public offering 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.

FAQ

What is the purpose of Revolution Medicines' public offering of RVMD stock?

The public offering aims to raise funds to support the development of targeted therapies for RAS-addicted cancers.

How much is Revolution Medicines planning to raise in its public offering?

Revolution Medicines is looking to raise up to $200 million, with an additional $30 million option for underwriters.

What are the potential risks associated with the RVMD stock offering?

Potential risks include shareholder dilution and uncertainty regarding the offering's completion due to market conditions.

Who are the underwriters for Revolution Medicines' stock offering?

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