Why Oric Pharmaceuticals Stock Is Shooting Higher Today

Oric Pharmaceuticals, Inc. ORIC has agreed to sell approximately 12.1 million shares of its common stock to a select group of institutional and accredited healthcare specialist investors in a private placement for $7 a piece.

Gross proceeds from the private placement will be approximately $85 million before deducting any offering-related expenses.

The private placement offers a premium of approximately 15% to ORIC's 30-day volume-weighted average price and around 8% to the closing price on June 23, 2023. 

The proceeds from this financing, cash equivalents, and marketable securities are expected to fund the current operating plan into late 2025.

"The extended cash runway positions us well, and we look forward to presenting initial clinical data from our three clinical programs over the coming quarters while continuing to advance our mission of overcoming resistance in cancer," said Jacob M. Chacko, MD, chief executive officer.

Price Action: ORIC shares are trading higher by 15% to $7.51 on the last check Monday.