Viking Therapeutics falls on $275 million stock, $225 million convertible deals
VKTX•Viking Therapeutics shares fell 9.6% before the bell after the company agreed to sell about 7.9 million shares at $35 each for $275 million and announced a $225 million convertible bond offering.
1. Two-part capital raise
Viking Therapeutics said it would sell about 7.9 million shares at $35 each, a 16% discount to the stock’s last close, for $275 million in gross proceeds. It also announced $225 million of 2% convertible bonds due Oct. 15, 2032, with a conversion price of $50.75.
2. Planned use of proceeds
The company intends to use net proceeds for clinical development, advancement and commercialization of its VK2735 program, and advancement of its VK3019 program, among other purposes. On Wednesday, it had targeted a $400 million raise split equally between stock and convertible bonds.
