Boston, MA – Verastem Oncology (Nasdaq: VSTM), a biopharmaceutical company focused on developing treatments for cancers driven by the RAS/MAPK pathway, announced it has raised approximately $75 million through a private placement agreement with institutional and accredited investors.
The financing includes about $24 million from the sale of common stock at $7.00 per share and $51 million from pre-funded warrants, which are priced at $6.9999 each. The warrants, issued in lieu of common stock to certain investors, carry an exercise price of $0.0001 per share. The company expects the transaction to close around April 28, 2025, pending customary closing conditions.
RTW Investments led the funding round, with participation from other new and existing investors, including BVF Partners, Nantahala Capital, Octagon Capital, OrbiMed, and Stonepine Capital Management.
Proceeds from the offering will support the anticipated launch of Verastem’s combination therapy avutometinib and defactinib for recurrent low-grade serous ovarian cancer, further research and development of pipeline candidates like VS-7375, as well as general corporate purposes and working capital.
Guggenheim Securities is acting as the lead placement agent, with RBC Capital Markets, BTIG, Mizuho, and B. Riley Securities serving as co-placement agents.
The securities sold in the private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the U.S. without proper registration or an exemption. Verastem plans to file a registration statement with the U.S. Securities and Exchange Commission (SEC) to allow for the resale of the common stock and any shares issued upon the exercise of the warrants within 30 days of closing.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities in jurisdictions where such activity would be unlawful.
