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Verastem (VSTM) offers 46.5 M private placement priced at $2.15 valued at $100 M to institutional investors

February 28, 2020 1:39pm

VSTM is up +$0.65 or +34.03% to $2.65

Verastem (VSTM) has agreed to sell approximately 46.5 million shares of its common stock to certain institutional investors, including RA Capital Management, Vivo Capital, Venrock Healthcare Capital Partners, Farallon Capital Management, Acuta Captal, EcoR1 Capital LLC, Avidity Partners and Logos Capital, in a private placement.

The offering price of $2.15 per share, a 12.6% premium to the February 27, 2020 closing price.

VSTM anticipates aggregate gross proceeds from the offering will be approximately $100 million, before deducting fees to the placement agents and other estimated offering expenses payable by VSTM.

The closing is anticipated to occur on March 3, 2020 subject to customary closing conditions. The Company intends to use the net proceeds from the offering to advance the defactinib and CH5126766 (VS-6766) programs, as well as for general corporate purposes.

Jefferies acted as sole lead placement agent for the offering and H.C. Wainwright & Co. acted as a placement agent.

Share Statistics

Avg Vol (3 month) 2.3M
Avg Vol (10 day) 1.83M
Shares Outstanding 74.35M
Float 63.08M
% Held by Insiders 5.18%
% Held by Institutions 34.74%
Shares Short (Feb 14, 2020) 4 12.76M
Short Ratio (Feb 14, 2020) 7.37
Short % of Float (Feb 14, 2020) 19.64%
Short % of Shares Outstanding (Feb 14, 2020) 17.16%
Shares Short (prior month Jan 15, 2020) 11.45M

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