Arcutis to raise $150M in public stock offering
Arcutis Biotherapeutics, a Westlake Village-based company developing drugs for immune dermatological conditions, plans to raise $150 million through a public offering of additional shares of common stock.
Arcutis announced the pricing of those shares on Aug. 2, at $20 per share. Shares of Arcutis closed at $19.50 that day and then shot up 17% on Aug. 3, trading at around $22.80 by mid-day.
Arcutis will issue and sell 7.5 million shares of stock, which will increase the number of outstanding shares by about 13%. The company expects gross proceeds of $150 million, before deducting underwriting discounts and commissions and other expenses. The offering is expected to close Aug. 5.
Arcutis said it intends to use proceeds “to fund the continued development, approval and commercialization of our multiple programs,” including the commercial launch of its drug Zorybe, and for “other general corporate purposes, including hiring of additional personnel.”
Morgan Stanley, Cowen and Guggenheim Securities are acting as bookrunning managers for the offering. Cantor and Mizuho Securities are acting as lead managers for the offering.