NEW YORK – Elevation Oncology on Thursday priced its initial public offering of 6,250,000 shares of common stock at $16 per share, expecting to bring in $100 million in gross proceeds before subtracting underwriting discounts, commissions, and other expenses.
The shares began trading on the Nasdaq on Friday under the symbol ELEV. The offering will close on June 29, and the underwriters will have up to 30 days to exercise an option to purchase an additional 937,500 shares of common stock at the IPO price, minus underwriting discounts and commissions.
Elevation expects the net proceeds from the offering to be between $90.4 million and $104.4 million, if underwriters exercise the option to buy additional shares. JP Morgan Securities, Cowen, and SVB Leerink are acting as joint bookrunning managers for the offering. Wedbush PacGrow is acting as lead manager for the offering.
The company said in its filing with the US Securities and Exchange Commission that it will use between $60 million and $70 million of the proceeds to advance its lead candidate seribantumab, an anti-HER3 therapy, and complete the Phase II CRESTONE trial of seribantumab in NRG1 fusion-positive solid tumors. The remaining proceeds will be used to expand its drug development pipeline and advance other R&D activities.
Although the company expects the funding will sustain its activities through the second quarter of 2023, Elevation indicated that it expects to raise additional money, as the current infusion of funds is "not expected to be sufficient for us to fund any of our current or future product candidates through regulatory approval."
Elevation emerged from stealth mode last July, raising $32.5 million in a Series A funding round. In November, Elevation raised another $65 million in Series B funding to support enrollment in the CRESTONE trial. The company has partnered with several labs including NeoGenomics, Caris Life Sciences, Strata Oncology, and Ashion Analytics, which are screening patients for NRG1 fusions for enrollment in the study. Elevation has also partnered with US Oncology Research to bolster enrollment for CRESTONE.