Sierra Oncology Shares Drop 12% Before Reverse Stock Split
January 22 2020 - 1:22PM
Dow Jones News
By Chris Wack
Sierra Oncology Inc. (SRRA) shares dropped 12% to 34 cents after
the company said its board of directors approved a reverse stock
split of its shares at a ratio of 1-for-40, effective after the
market closes Wednesday.
The company said shortly following the reverse stock split, the
series A convertible voting preferred stock issued in the recently
completed $103 million financing will be converted into shares of
common stock. It said Gilead Sciences Inc. (GILD) will be issued
725,000 shares of common stock on a post-split basis and a warrant
to purchase an equivalent amount of common stock, in consideration
for amending the royalty rates and milestones in an asset purchase
agreement with Gilead for momelotinib.
Sierra Oncology said its cash and cash equivalents totaled $67.7
million as of Sept. 30, and that subsequently it had closed an
underwritten public offering with gross proceeds to Sierra Oncology
of $103 million.
Gilead shares were up 1% to $63.09 in midday trading.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
January 22, 2020 13:07 ET (18:07 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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