Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), an early commercial-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, has announced the pricing of its underwritten public offering of common stock and pre-funded warrants. Arcutis is selling 32,500,000 shares of common stock and, in lieu of common stock to certain investors, pre-funded warrants to purchase 7,500,000 shares of common stock in the offering. The shares of common stock are being sold at a public offering price of US$2.50 per share and the pre-funded warrants are being sold at a public offering price of US$2.4999 per pre-funded warrant, which represents the per share public offering price for each share of common stock less the US$0.0001 per share exercise price for each pre-funded warrant. In addition, Arcutis has granted the underwriters a 30-day option to purchase up to an additional 6,000,000 shares of its common stock at the public offering price per share, less underwriting discounts and commissions. The gross proceeds to Arcutis from the offering are expected to be approximately US$100.0 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Arcutis, and assuming no exercise of the underwriters’ option to purchase additional shares. Subject to the satisfaction of customary conditions, the offering is expected to close on October 24, 2023.
Latham & Watkins advised Acrutis Biotherapeutics in the offering, with a capital markets team led by partners Ross McAloon and Shayne Kennedy, with Orange County associates Mekbeb Hagos and David Stepovich. Advice was also provided on tax matters by Bay Area partner Grace Lee, with associates Gregory Conyers and Rasha Suleiman; and on healthcare and life sciences matters by Washington, D.C. partner Elizabeth Richards, Bay Area partners Heather Deixler and Betty Pang, and Washington, D.C. counsel Chad Jennings, with San Diego associate Kiera Murphy, and Bay Area associate Mitch Bennett.*
*Admitted to practice in New South Wales (Australia) only.