Announcement
Erasca Inc. (NASDAQ: ERAS) disclosed that it intends to conduct an underwritten public offering of up to $500 million of common stock, subject to market and other conditions. The company also granted the underwriters a 30‑day option to purchase an additional $75 million of shares.
Market Reaction
Following the disclosure, Erasca’s shares on the Nasdaq fell approximately 12 % in after‑hours trading on Monday.
Use of Proceeds
The company stated that net proceeds from the offering, together with its existing cash, cash equivalents and marketable securities, will be allocated to research and development of its product candidates targeting RAS/MAPK pathway‑driven cancers, other development programs, working capital and general corporate purposes.
Underwriters
J.P. Morgan, Morgan Stanley, Jefferies and Evercore ISI have been appointed as joint book‑running managers for the proposed transaction.
Caveats
Erasca emphasized that there is no assurance that the offering will be completed, nor any guarantee regarding the final size or terms of the transaction.