Rapport Prices $355M Raise at $21 a Share, 6% Below Tuesday's Close
RAPP is trading near its 52-week low of $23.75 (6.1% below the low).
Summary
Rapport priced the capital raise it launched Tuesday night: about $175.0M of common stock at $21.00 a share, up to $25.0M in pre-funded warrants at $20.999, and $150.0M of 2.25% convertible notes due 2032 with a $26.7750 conversion price — a 27.50% premium to the equity price. Underwriters were granted 30-day options on about $30.0M more stock and $22.5M more notes. A single investor is also buying roughly $30.0M of stock privately at the same $21.00 price, and that private placement closes only if the common stock offering closes. The $21.00 offering price sits below the $22.31 last trade, so buyers are getting a discount and existing holders absorb dilution right after the stock ran up on the Oct. 20 positive Phase 2 bipolar mania data. Net proceeds of about $187.5M from the stock deal, $28.2M from the private placement and $145.0M from the notes push the company's cash runway through the end of 2029, funding the RAP-219 epilepsy and bipolar programs. The notes are not convertible at the holder's option until conditions are met before September 2032, and Rapport can force redemption on or after the later of December 2030 or 60 days after topline FOCUS 1/FOCUS 2 and pivotal bipolar mania data, if the stock holds at least 130% of the conversion price. Offerings are expected to close on or about October 30, 2026.
Updated with an SEC FWP filing · What changed
Updates
· SEC FWP — Rapport granted underwriters 30-day options on about $30.0M more stock and $22.5M more notes; the private placement closes only if the common stock offering closes.
At the time of this announcement, RAPP was trading at $22.31 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $23.75 to $52.93. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.