- Verastem Oncology (VSTM, Financial) announces $75 million private placement to advance cancer treatment pipeline.
- Proceeds will fund potential launches and ongoing research and development.
- Key investors include RTW Investments and several institutional partners.
Verastem Oncology (VSTM), a biopharmaceutical company focused on developing new medicines for RAS/MAPK pathway-driven cancers, has entered into a securities purchase agreement for a $75 million private placement. The agreement involves institutional and accredited investors acquiring approximately $24 million of common stock at $7.00 per share and $51 million of pre-funded warrants at $6.9999 each. Each pre-funded warrant has an exercise price of $0.0001 per share.
The financing round, spearheaded by RTW Investments with significant participation from BVF Partners, Nantahala Capital, Octagon Capital, OrbiMed, and Stonepine Capital Management, is expected to close by April 28, 2025, pending customary closing conditions. Guggenheim Securities is the lead placement agent, with RBC Capital Markets, BTIG, Mizuho, and B.Riley Securities co-placing the effort.
The funds raised will be instrumental in launching avutometinib and defactinib for recurrent low-grade serous ovarian cancer. Additionally, they will support ongoing clinical research, development of product candidates like VS-7375, and general corporate purposes. This move aligns with Verastem's strategic focus on pioneering treatments that inhibit critical signaling pathways in cancer.
The securities involved in this transaction are unregistered and may not be sold in the U.S. unless a registration statement is filed. Verastem has committed to filing a registration statement with the SEC within 30 days post-closure to facilitate the resale of these securities. Investors are cautioned to consider risks and uncertainties, including developmental timelines and regulatory approvals, as outlined in Verastem’s filings with the SEC.
