Revance Announces Pricing of $100.0 Million Public Offering of Common Stock
Revance Therapeutics, Inc. (RVNC) priced an underwritten public offering of 16 million shares of common stock at $6.25 per share, expecting to raise $100 million in gross proceeds. The offering is set to close soon.
Negative
The dilution effect on existing shareholders due to the increase in outstanding shares from the public offering.
When a company announces a public offering of its shares, it's a significant event that can influence the company's capital structure and share value. In the case of Revance Therapeutics, the offering of 16 million shares at $6.25 each to raise $100 million is a strategic move to generate capital. This influx of funds could be directed towards research and development, commercialization efforts, or to strengthen the company's balance sheet. However, investors should consider the potential dilutive effect on existing shares, which could lead to a decrease in earnings per share and potentially impact the stock price negatively in the short term.
Moreover, the pricing of the offering at $6.25 per share provides a benchmark for the market, reflecting the company's perceived value by underwriters and institutional investors. It is crucial to compare this price to the current trading levels and historical performance to assess market sentiment. If the offering price is set at a discount to the current market price, it may suggest a bearish outlook or a need for the company to incentivize investors to participate in the offering.
The biotechnology sector, where Revance Therapeutics operates, is highly competitive and capital-intensive. Raising capital through a public offering is a common strategy for biotech companies to fund ongoing clinical trials or to bring products to market. The success of such an offering can be indicative of investor confidence in the company's pipeline and future prospects. It's important to analyze the context within the industry, including how peers have fared with similar offerings and the current appetite for biotech investments.
Additionally, the timing of the offering can be critical. If the sector is experiencing a bullish phase, the offering might be well-received, but if the market is bearish, especially for biotech stocks, the company could face challenges in selling shares or may have to offer them at a lower price, affecting the proceeds and potentially signaling investor caution about the sector or the company's prospects.
For a biotech company like Revance Therapeutics, the capital raised from a public offering is often earmarked for specific developmental milestones. This could include advancing clinical trials, scaling production capabilities, or preparing for the commercial launch of a therapy. Stakeholders should evaluate the company's pipeline and assess how the additional $100 million will accelerate or enhance these processes.
It is also vital to consider the company's burn rate and runway post-offering. If the proceeds extend the company's financial runway significantly, it provides more time for the company to achieve regulatory approvals or reach marketability without the immediate need for further financing. On the other hand, if the burn rate is high and the runway short, the company may soon be back in the market seeking additional funds, which could result in further dilution for shareholders.
03/04/2024 - 09:25 AM
NASHVILLE, Tenn. --(BUSINESS WIRE)--
Revance Therapeutics, Inc. (Nasdaq: RVNC) (“Revance” or the “Company”) today announced the pricing of an underwritten public offering of 16,000,000 shares of its common stock. The shares of common stock are being offered at a public offering price of $6.25 $100.0 million
Barclays is acting as the sole book-running manager for the proposed offering.
The shares of common stock described above are being offered by Revance pursuant to an automatic shelf registration statement on Form S-3 (File No. 333-275548) previously filed with the Securities and Exchange Commission (the “SEC”) on November 14, 2023. A preliminary prospectus supplement and accompanying prospectus relating to the public offering have been filed with the SEC and are available on the SEC’s website at www.sec.gov. A final prospectus supplement and accompanying prospectus will be filed with the SEC. When available, copies of the final prospectus supplement and accompanying prospectus may also be obtained by contacting Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at (888) 603-5847, or by email at barclaysprospectus@broadridge.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Revance
Revance is a biotechnology company focused on developing and commercializing innovative aesthetic and therapeutic offerings. Revance’s portfolio includes DAXXIFY® (DaxibotulinumtoxinA-lanm) for injection and the RHA® Collection of dermal fillers in the U.S. Revance has also partnered with Viatris Inc. to develop a biosimilar to onabotulinumtoxinA for injection and Shanghai Fosun Pharmaceutical to commercialize DAXXIFY® in China .
“Revance”, the Revance logo, and DAXXIFY® are registered trademarks of Revance Therapeutics, Inc. Resilient Hyaluronic Acid® and RHA® are trademarks of TEOXANE SA.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements, including, without limitation, statements about: the completion and timing of the offering; any exercise by the underwriter of its option to purchase additional shares; and statements regarding the intended use of the net proceeds from the offering are based on management’s current assumptions and expectations and involve risks, uncertainties and other important factors. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include, without limitation, risks and uncertainties related to the satisfaction of customary closing conditions related to the proposed public offering and the impact of general economic, industry or political conditions in the United States or internationally. There can be no assurance that Revance will be able to complete the proposed public offering on the anticipated terms, or at all. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. Additional risks and uncertainties relating to the proposed offering, Revance and its business can be found under the heading "Risk Factors" in documents Revance files from time to time with the SEC, including its annual report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 28, 2024, the preliminary prospectus supplement and the final prospectus supplement, when available, each relating to this offering, and its future periodic reports to be filed with the SEC. Revance expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based, except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240304308299/en/
INVESTORS
Jessica.serra@revance.com
laurence@gilmartinir.com
MEDIA
cathryn.castaldo@revance.com
Source: Revance Therapeutics, Inc.
