CG Oncology Announces Pricing of Public Offering
Rhea-AI Summary
CG Oncology (CGON) has announced the pricing of its public offering, consisting of 8,000,000 common stock shares at $28.00 per share. The company is offering 7,300,000 shares, while an existing stockholder is offering 700,000 shares. The gross proceeds to CG Oncology are expected to be $204.4 million, excluding underwriting discounts and commissions. The offering is set to close on December 16, 2024. The company has granted underwriters a 30-day option to purchase up to an additional 1,200,000 shares. Morgan Stanley, Goldman Sachs, TD Cowen, and Stifel are acting as joint book-running managers, with LifeSci Capital as lead manager.
Positive
- Expected gross proceeds of $204.4 million to strengthen company's financial position
- Support from major financial institutions as underwriters indicates strong market confidence
Negative
- Potential dilution of existing shareholders' value due to 8,000,000 new shares being issued
- Additional dilution possible if underwriters exercise option for 1,200,000 extra shares
News Market Reaction – CGON
On the day this news was published, CGON declined 0.38%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
IRVINE, Calif., Dec. 12, 2024 (GLOBE NEWSWIRE) -- CG Oncology, Inc. (Nasdaq: CGON), a late-stage clinical biopharmaceutical company focused on developing and commercializing a potential backbone bladder-sparing therapeutic for patients afflicted with bladder cancer, today announced the pricing of its public offering of 8,000,000 shares of its common stock, 7,300,000 of which are being offered by CG Oncology and 700,000 of which are being offered by an existing stockholder of CG Oncology, each at a public offering price of
Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, TD Cowen and Stifel, Nicolaus & Company, Incorporated are acting as joint book-running managers for the offering. LifeSci Capital LLC is acting as lead manager for the offering.
A registration statement relating to the offering has been filed with the Securities and Exchange Commission and was declared effective on December 12, 2024. The offering is being made only by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained, when available, from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at (866) 718-1649, or by email at prospectus@morganstanley.com; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, New York 10017, by telephone at (855) 495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com; or Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About CG Oncology
CG Oncology is a late-stage clinical biopharmaceutical company focused on developing and commercializing a potential backbone bladder-sparing therapeutic for patients afflicted with bladder cancer. CG Oncology sees a world where urologic cancer patients may benefit from its innovative immunotherapies to live with dignity and have an enhanced quality of life.
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believe,” “expect,” “may,” “plan,” “potential,” “will,” and similar expressions, and are based on CG Oncology’s current beliefs and expectations. These forward-looking statements include, but are not limited to, CG Oncology's expectations regarding the consummation of the offering and the satisfaction of customary closing conditions with respect to the offering. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include risks and uncertainties related to market conditions, satisfaction of customary closing conditions related to the offering and other risks and uncertainties that are described in CG Oncology’s Annual Report on Form 10-K for the year ended December 31, 2023, CG Oncology’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, the preliminary prospectus related to the offering, and other filings CG Oncology makes with the SEC. Any forward-looking statements speak only as of the date of this press release and are based on information available to CG Oncology as of the date of this release, and CG Oncology assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts
Media
Sarah Connors
VP, Communications and Patient Advocacy
(508) 654-2277
sarah.connors@cgoncology.com
Investor Relations
Chau Cheng
VP, Investor Relations
(949) 342-8939
chau.cheng@cgoncology.com
FAQ
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