Kura Oncology Inc (NASDAQ:KURA) shares are trading higher after the announced $150 million private placement.
The stock hit its 52-week high (range of $7.41-$15.96), with a session volume of 958.893K compared to the average volume (100 day) of 1.009 million, according to data from Benzinga Pro.
The company agreed to sell 1,376,813 shares at $17.25 per share, representing a premium of approximately 29% to Kura’s closing price on January 23, 2024, and pre-funded warrants to purchase 7,318,886 shares at a price per pre-funded warrant of $17.2499.
Related Content: Clinical Advancements In Kura Oncology’s Lead Program Ziftomenib Hint at Upsurge in Success Likelihood: Analyst.
Kura anticipates the gross proceeds from the private placement to be approximately $150 million before deducting any offering-related expenses.
The private placement is expected to close on or about January 26, 2024
The financing includes participation from existing institutional investors, including EcoR1 Capital, an affiliate of Deerfield Management and Suvretta Capital.
Kura will use the net proceeds to fund research and development of its clinical-stage product candidates, other research programs, working capital and general corporate purposes.
The proceeds from this financing, combined with current cash, cash equivalents, and investments, are expected to fund current operations into 2027.
As of September 30, 2023, Kura had $452.6 million in cash, cash equivalents, and investments that were expected to provide a cash runway to mid-2026.
Read Next: Kura Oncology’s Head & Neck Cancer Candidate Shows Meaningful Antitumor Activity In Pretreated Patients.
Price Action: KURA shares are up 50.70% at $20.22 on the last check Wednesday.
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This article Why Is Cancer Focused Kura Oncology Stock Is Trading Higher Today? originally appeared on Benzinga.com
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