Summit Announces Agreement For a Fundraising of approximately $50 Million
October 02 2020 - 5:40PM
Summit Therapeutics Inc.
(“Summit” or the “Company”)
Summit Announces Agreement For a Fundraising of
approximately $50 Million
Cambridge, MA, October 2, 2020
– Summit (NASDAQ: SMMT) today announces that it has
entered into a binding agreement with the Company’s Chief Executive
Officer and Executive Chairman, Robert W. Duggan, for a fundraising
of approximately $50 million (the “Fundraising”) through the
issuance and sale in a private placement of shares of common stock
to Mr. Duggan. The transaction provides Summit the ability to
place up to 14,970,060 new shares of common stock with Mr. Duggan
in exchange for up to $50 million in new investment. The aggregate
purchase price will reflect a price of $3.34 per share of common
stock. The price per share of the common stock sold in the
Fundraising represents the Nasdaq closing price per share
immediately preceding the entry into the binding agreement for the
Fundraising.
The purchase agreement also affords Summit the flexibility to
place fewer than the maximum shares of common stock with Mr.
Duggan, in the Company’s discretion, provided that no less than
9,730,539 shares of common stock shall be sold to Mr. Duggan in the
offering. Prior to the closing of the Fundraising, which Summit
expects to occur in approximately two weeks’ time, the Company
intends to engage with third parties who may have an interest in
making an investment in the Company on similar terms as those
agreed with Mr. Duggan.
Summit believes that the net proceeds of the Fundraising will
extend its cash runway to the third quarter of 2021. The Company
expects to use these funds to support the following activities:
- Ridinilazole: Continued patient enrolment into the Ri-CoDIFy
Phase 3 clinical trial program of ridinilazole for the treatment of
Clostridium difficile infection.
- Ridinilazole: Preparatory activities to support the commercial
launch of ridinilazole, if approved.
- Development of early-stage research projects using the
Company’s Discuva Platform.
- General corporate purposes.
The securities issued to Mr. Duggan at the closing and
any securities issued to third parties on similar terms on or
around such date will not be registered under the Securities and
Exchange Act of 1933, as amended, and may not be offered or sold
absent registration or an applicable exemption from registration
requirements.
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Contact
Summit Press Office investors@summitplc.com Michael
Donaldson, Chief Financial Officer
mike.donaldson@summitplc.com |
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Summit Forward-looking Statements
Any statements in this press release about the Company’s future
expectations, plans and prospects, including but not limited to,
statements about the timing for the closing of the Fundraising,
clinical and preclinical development of the Company’s product
candidates, the therapeutic potential of the Company’s product
candidates, the potential commercialization of the Company’s
product candidates, the timing of initiation, completion and
availability of data from clinical trials, the potential submission
of applications for marketing approvals and other statements
containing the words “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” “plan,” “potential,”
“predict,” “project,” “should,” “target,” “would,” and similar
expressions, constitute forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those indicated by such
forward-looking statements as a result of various important
factors, including: the uncertainties inherent in the initiation of
future clinical trials, availability and timing of data from
ongoing and future clinical trials and the results of such trials,
global public health crises, including the coronavirus COVID-19
outbreak, that may affect timing and status of our clinical trials
and operations, whether preliminary results from a clinical trial
will be predictive of the final results of that trial or whether
results of early clinical trials or preclinical studies will be
indicative of the results of later clinical trials, expectations
for regulatory approvals, laws and regulations affecting government
contracts and funding awards, availability of funding sufficient
for the Company’s foreseeable and unforeseeable operating expenses
and capital expenditure requirements and other factors discussed in
the “Risk Factors” section of filings that the Company makes with
the Securities and Exchange Commission, including the Company’s
Current Report on Form 8-K filed on September 29, 2020 with certain
disclosures regarding the three and six months ended June 30, 2020.
Accordingly, readers should not place undue reliance on
forward-looking statements or information. In addition, any
forward-looking statements included in this press release represent
the Company’s views only as of the date of this release and should
not be relied upon as representing the Company’s views as of any
subsequent date. The Company specifically disclaims any obligation
to update any forward-looking statements included in this press
release.
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