Conatus Pharmaceuticals Inc (NASDAQ:CNAT) has announced its common stock offering of about 5,200,000 shares as well as the pricing details with the stock price coming in at $5.50 per share.
Conatus’ common stock offering is expected to bring in about $28.6 million before underwriting the costs, discounts and commissions. The company plans to pump roughly $16.7 million of the proceeds from the stock offering into pipeline expansion. Part of it will be used as working capital and a significant portion of it will be used for general corporate purposes. Approximately $11.9 million will be used to buy back about 2,166,836 common shares that were previously acquired by funds associated with Advent Private Equity.
Conatus underwriters have a thirty-day window to repurchase more common stock
Conatus gave its underwriters about 30 days to buy up to 780,000 additional common stock shares. The share offering will be open until May 16 once it has satisfied the closing conditions. Stifel Financial Corp (NYSE:SF) and Stifel Financial Corp (NYSE:SF) were selected as the managers for the offering.
Conatus deals with the development and commercialization of liver disease treatments. The company has a market capitalization $216.31 million. The company aims to use the proceeds from the latest stock offering to boost its business. The company has about $58.08 million in the books and roughly $1 million in current liabilities. The past month seems to have been a good one considering that its stock has surged by more than 40 percent.
Conatus will offer its shares courtesy of a registration statement as previously filed with the Securities and Exchange Commission. The company will file a final prospectus that will accompany the current prospectus for the common share offering. The firm has also issued a notification that the press release about the share offering is not an offer to sell, buy or a solicitation for unlawful registration. Conatus also announced that copies of the final prospectus, as well as the accompanying prospectus for its latest offering, can be obtained from the firms tasked with handling the financial dealings.
Conatus stock closed the latest trading session on Tuesday at $5.55 after falling by 1.25 percent from the previous close.
