BUZZ-Biopharma firm Veru tumbles on $25 mln stock-and-warrants offering

Reuters10-30
BUZZ-Biopharma firm Veru tumbles on $25 mln stock-and-warrants offering

** Shares of biopharmaceutical firm Veru VERU.O down 20.3% at $2.79 premarket after $25 mln offering priced

** Miami, Florida-based co announces 8.4 mln shares, including 7 mln pre-funded warrants, and Series A and B warrants to each buy up to 8.4 mln shares

** Combined offering price of $3 is 14.3% discount to stock's last close

** If all warrants in offering are exercised, VERU would receive approx $50 mln of additional gross proceeds

** Co has ~14.6 mln shares outstanding; in Aug, it effected a 1-for-10 reverse stock split to regain Nasdaq compliance

** It intends to use net offering proceeds to fund development of enobosarm, with a primary focus on Phase 2b PLATEAU clinical study activities

** Enobosarm being developed to counter muscle loss in overweight or obese patients using GLP-1 receptor agonists, such as semaglutide (Wegovy)

** Canaccord Genuity and Oppenheimer are joint bookrunners for offering

** Stock fell 4% on Weds, down 46% YTD

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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