Clovis Oncology Inc (NASDAQ: CLVS) said it will need to raise additional capital in the near term to fund its operating plan and continue as a going concern beyond February of 2023.
Although approximately 58% of shares voted to support the reverse stock split proposal, the affirmative vote of holders of a majority of the issued and outstanding shares of common stock was necessary for this proposal to be approved.
Without the approval of an increase in authorized shares of common stock, Clovis is not able to raise meaningful additional capital through public or private equity-based offerings.
Therefore, the company is currently exploring alternatives and strategies to increase the number of shares available for issuance to permit greater flexibility in raising capital.
Related: FDA's Recommendation Before Clovis Submits Rubraca Expanded Use Application For Ovarian Cancer.
Clovis is actively exploring funding sources other than equity financing transactions. It is currently in preliminary discussions about partnering certain development and commercialization rights to FAP-2286.
Clovis reported Q2 Rubraca sales of $32.1 million, down 13% Y/Y. The company said COVID has continued to impact second-line maintenance treatment. The company held $94.6 million in cash balance.
While it does appear that ovarian cancer diagnoses are reverting to pre-COVID levels, affecting front-line treatments. It will not likely impact the second-line indications for several quarters.
Price Action: CLVS shares are down 10.80% at $1.48 on the last check Monday.
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