Verrica Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Verrica Pharmaceuticals (Nasdaq: VRCA) announced plans for an underwritten public offering of its common stock, subject to market conditions. The offering includes a potential 30-day option for underwriters to purchase an additional 15% of the shares. RBC Capital Markets is the sole book-runner for the offering. This follows the effective shelf registration statement filed with the SEC on March 25, 2020. The offering aims to raise capital for developing dermatology therapeutics, including its late-stage candidate VP-102 for treating skin diseases.

Positive

• The public offering aims to raise capital to support development of late-stage product candidate VP-102, targeting significant unmet medical needs.

Negative

• The potential dilution of existing shareholders due to the public offering could negatively impact stock prices.
• Market conditions may affect the completion and terms of the offering, introducing uncertainty.

WEST CHESTER, Pa., June 29, 2022 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced that it intends to offer and sell, subject to market conditions, shares of its common stock in an underwritten public offering. All of the shares of common stock to be sold in the offering will be offered by Verrica. Verrica also intends to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares of its common stock offered in the public offering on the same terms and conditions. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.

RBC Capital Markets is acting as sole book-runner for the offering.

A shelf registration statement relating to the shares of common stock offered in the public offering described above was filed with the Securities and Exchange Commission (SEC) on March 13, 2020 and declared effective by the SEC on March 25, 2020. The offering will be made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus, when available, may also be obtained by contacting RBC Capital Markets, Attention: Equity Capital Markets, 200 Vesey Street, 8th Floor, New York, NY 10281, or by telephone at (877) 822-4089 or by email at equityprospectus@rbccm.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered 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 Verrica Pharmaceuticals Inc.

Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica’s late-stage product candidate, VP-102, is in development to treat molluscum, common warts and external genital warts, three of the largest unmet needs in medical dermatology. Verrica is also developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts. The Company has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize LTX-315 for dermatologic oncology conditions.

Forward-Looking Statements

Any statements in this press release about future expectations, plans and prospects for Verrica Pharmaceuticals Inc., including statements about Verrica’s anticipated public offering and other statements containing the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all and such other factors as are set forth in the risk factors detailed in Verrica’s Annual Report on Form 10-K for the year ended December 31, 2021 and other filings Verrica makes with the SEC from time to time. In addition, the forward-looking statements included in this press release represent Verrica’s views as of the date hereof. Verrica anticipates that subsequent events and developments will cause Verrica’s views to change. However, while Verrica may elect to update these forward-looking statements at some point in the future, Verrica specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Verrica’s views as of any date subsequent to the date hereof.

FOR MORE INFORMATION, PLEASE CONTACT:

Investors:
Terry Kohler
Chief Financial Officer
484.453.3296
info@verrica.com

William Windham
Solebury Trout
646.378.2946
wwindham@troutgroup.com

Media:
Zara Lockshin
Solebury Trout
646.378.2960
zlockshin@troutgroup.com

FAQ

What is the purpose of Verrica Pharmaceuticals' public offering?

The public offering aims to raise capital for developing dermatology therapeutics, including late-stage candidate VP-102.

What is the size of the stock offering by Verrica Pharmaceuticals?

The exact size of the offering is subject to market conditions and has not been disclosed in the press release.

Who is managing the stock offering for Verrica Pharmaceuticals?

RBC Capital Markets is acting as the sole book-runner for the public offering.

What are the risks associated with Verrica Pharmaceuticals' stock offering?

Risks include potential dilution of existing shares and uncertainty regarding market conditions affecting the offering's terms.

When was the registration statement for the stock offering filed?

The shelf registration statement was filed with the SEC on March 13, 2020, and declared effective on March 25, 2020.