Sierra Oncology Declares 1-for-40 Reverse Stock Split

By Chris Wack

Sierra Oncology Inc. (SRRA) said its board of directors has approved a reverse stock split of its shares of common stock 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, and 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.

Sierra Oncology shares were up 5%, to 41 cents, premarket.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

January 22, 2020 07:34 ET (12:34 GMT)

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