ORIC Pharmaceuticals is set to raise $85 million in a private placement after the sale of 12.1 million shares or pre-funded warrants to a select group of institutional and accredited healthcare specialist investors at $7 a share. The financing includes participation from new and existing institutional investors and is being led by Nextech, with participation from EcoR1 Capital, Frazier Life Sciences, Venrock Healthcare Capital Partners, and Boxer Capital. The pre-funded warrants will be immediately exercisable and will remain so until exercised in full.
The sale represents a premium of 15% to ORIC’s 30-day volume-weighted average price and 8% to Friday’s closing price. Participating investors entered into confidentiality agreements, and executed lock-up agreements with ORIC to restrict their ability to sell ORIC shares.
ORIC intends to use the proceeds from the proposed financing to fund research and development of its clinical-stage product candidates and research programs as well as working capital and general corporate purposes. Combined with current cash, cash equivalents, and marketable securities, the financing is expected to be sufficient to fund the company’s current operating plan into late 2025.
The financing is expected to close Tuesday.
