Revolution Medicines Announces Pricing of Upsized $230.0 Million Public Offering of Common Stock

Rhea-AI Summary

Revolution Medicines, Inc. (Nasdaq: RVMD) has announced an underwritten public offering of 11,500,000 shares of common stock priced at $20.00 per share, aiming for gross proceeds of $230 million. The offering is set to close on July 22, 2022, pending customary conditions. Additionally, underwriters have a 30-day option to buy 1,725,000 more shares. J.P. Morgan, Cowen, and Guggenheim Securities are the joint book-running managers. This move is designed to further support the development of targeted therapies for RAS-addicted cancers.

Positive

• Expected gross proceeds of $230 million will support R&D in targeted therapies.
• Grant of a 30-day underwriters' option to purchase additional shares could provide further funding.

Negative

• Shareholder dilution may occur due to the large number of shares being offered.

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 the pricing of its underwritten public offering of 11,500,000 shares of common stock at a public offering price of $20.00 per share, before underwriting discounts and commissions. All of the shares of common stock are being offered by Revolution Medicines. In addition, Revolution Medicines has granted the underwriters a 30-day option to purchase up to an additional 1,725,000 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, are expected to be $230.0 million, excluding any exercise of the underwriters’ option to purchase additional shares. The offering is expected to close on July 22, 2022, subject to customary closing conditions.

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 final 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 the expected completion and timing of closing of the public offering. Such forward-looking statements involve risks and uncertainties, including, without limitation, risks and uncertainties related to market conditions and the satisfaction of closing conditions related to the 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 prospectus supplement related to the 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 price of Revolution Medicines' public offering?

Revolution Medicines has priced its public offering at $20.00 per share.

How many shares is Revolution Medicines offering?

The company is offering 11,500,000 shares of common stock.

What are the expected gross proceeds from the offering by RVMD?

The offering is expected to generate gross proceeds of $230 million.

When is the closing date for the Revolution Medicines stock offering?

The offering is expected to close on July 22, 2022.

Who are the book-running managers for the RVMD offering?

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