Verastem Prices $250M Stock Offering at $8.00, Diluting Existing Holders
Summary
Verastem priced a $250 million underwritten offering of 30.9 million shares at $8.00 per share, plus pre-funded warrants for 312,503 shares at $7.9999. Underwriting discounts are $0.48 per share, with net proceeds of $235.0 million before expenses. The deal is expected to close October 15, 2026. Proceeds will fund the VS-7375 program and general corporate purposes. The offering price is a modest premium to the last close of $7.53, but the share count represents roughly 46% of the current market cap, making this highly dilutive. This follows the company's Q2 revenue of $25.1 million and a going-concern warning from the Q1 10-Q, so the raise is critical for runway. Jefferies, Guggenheim, and Cantor are joint book-runners.
Updated with an SEC 424B5 filing · What changed
Updates
· SEC 424B5 — The 424B5 prospectus supplement sets underwriting discounts of $0.48 per share, net proceeds of $235.0 million before expenses, and expected closing on October 15, 2026.
At the time of this announcement, VSTM was trading at $7.53 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $674.7M. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: BusinessWire.