iTeos Therapeutics to raise $120 million via registered direct offering
iTeos Therapeutics Inc (NASDAQ: ITOS) is up 30% today after announcing plans of a registered direct offering.
iTeos Therapeutics stock pops on Q1 earnings
The biotechnology company will sell a total of 1,142,857 shares at $17.50 each which translates to a 44% premium on its previous close.
The offering will also include “pre-funded warrants to purchase up to 5,714,285 shares”, as per its press release on Friday.
Also today, $ITOS said it lost $38.2 million or $1.07 per share in Q1. That came in up significantly from a $15.6 million loss or 44 cents per share in the same quarter last year.
Still, iTeos Therapeutics stock is now up a whopping 70% versus its year-to-date low in late January.
How will $ITOS use proceeds from the offering?
The registered direct offering will raise about $120 million in gross proceeds that iTeos Therapeutics will use to “advance its clinical programmes and preclinical pipeline”.
Part of the proceeds will go to general corporate purposes as well, as per the press release on Friday.
$ITOS expects the financing that is led by Boxer Capital and RA Capital Management (existing investors) to close within the next week provided that it satisfies the customary closing conditions.
The biotech firm had $595 million in cash and equivalents (including investments) at the end of March 2024. Wall Street currently has a consensus “buy” rating on iTeos Therapeutics shares that do not pay a dividend at writing.
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