San Diego Business Journal

Mirati Announces Common Stock Offering at $17.50 Per Share

Friday, October 25, 2013

San Diego-based Mirati Therapeutics Inc. announced it will offer 3.25 million shares of its common stock at $17.50 per share. The company expects gross proceeds from the secondary public offering to be $56.9 million.

The company sort of slipped under the radar among this year’s San Diego biotechs hopping on the initial public offering train. But it, too, started trading on the Nasdaq this summer after it conducted a stock swap with Montreal-based MethylGene Inc.

Stock dropped 3.6 percent for Mirati (Nasdaq: MRTX) on Oct. 24, the day following the announcement. It closed at $17.47 per share Oct. 24. The company, which is creating a therapy for solid tumors and oral cancers, has a market capitalization of about $174 million.

The company said in an August regulatory filing that it had an accumulated deficit of $157.8 million, and has not generated any revenue from product sales.

The offering is expected to close on or around Oct. 29. Mirati said in a statement that it plans to use net proceeds from the offering for research and development, working capital, and potential future licensing or partnership transactions, as well as for other general purposes.

— SDBJ Staff Report