GW Pharma Upsizes Deal and Sells 2.8mm shares at $90 to Raise $252mm

GW Pharma

GW Pharma (NASDAQ: GWPH) announced this evening that is has priced a secondary offering at $90, raising $252mm by selling 2.8mm shares. The underwriters include Morgan Stanley, BofA Merrill Lynch, Goldman, Sachs & Co., Cowen and Company and Piper Jaffray. If the underwriters exercise their option to acquire 420K shares within the next 30 days, the deal will raise gross proceeds of approximately $290mm, marking the company’s largest to date. The company had announced earlier today that it expected to raise up to $172.5mm with the underwriters option, so the demand was strong.

GWPH filed a prospectus detailing the offering, describing its intended use of proceeds, based on the original $150mm target:

  • $50.0 million to fund pre-launch commercialization activities for Epidiolex;
  • $30.0 million to fund further expansion of our Epidiolex manufacturing capability to meet anticipated medium and long-term demand;
  • $25.0 million to fund manufacture of Epidiolex inventory in preparation for launch;
  • $20.0 million to fund the expansion of the market opportunity for Epidiolex through clinical development of other orphan indications;
  • $10.0 million to fund the advancement of other pipeline opportunities; and
  • $6.3 million for other general corporate purposes.

GW Pharma’s stock closed at a new high for 2016 at $97.10, representing a gain of 39.8% YTD following a steep decline early in the year in advance of the release of the results of its Phase 3 clinical trial for Epidiolex in the treatment of Dravet syndrome. The stock has extended its gains this month after it released the results of an additional Phase 3 clinical trial for Epidiolex in the treatment of Lennox-Gastaut syndrome in June.
gwph 071216

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

Get Our Sunday Newsletter