ORIC Pharma Surges On $85 Mln Private Placement Financing

(RTTNews) - Shares of ORIC Pharmaceuticals, Inc. (ORIC) are surging more than 17% Monday morning after the company announced about $85 million private placement financing.

ORIC said that a Group of institutional and healthcare specialist investors have agreed to buy 12.1 million shares, or pre-funded warrants in lieu thereof, of the company for $7 per share, a premium of about 8% to the closing price on June 23.

The pre-funded warrants will have an exercise price of $0.0001 per share of common stock, will be immediately exercisable, and will remain exercisable until exercised in full, the company said.

The financing is expected to close on June 27.

Pro forma cash and investments are expected to fund current operating plan into late 2025, ORIC added.

"As the competitive profiles of multiple of our clinical programs begin to emerge with respect to internally generated data and competitor updates, the added financial firepower provided by this blue-chip syndicate of investors, both new and existing and with whom we've had longstanding relationships, allows us to aggressively advance our pipeline for the benefit of patients," said Jacob M. Chacko, chief executive officer.

ORIC, currently at $7.50, touched a new high of 7.65 this morning.