Clovis launches $225M private fundraiser

BOULDER  — Clovis Oncology Inc. (Nasdaq: CLVS) has announced $225 million in a private offering, days after its stock lost almost 16 percent of its value due to poor second quarter results.

The company said the bonds, which are only available to qualified institutional investors, will come due in 2024 and can be converted into either cash or stock. The interest rates on those notes are yet to be determined.

A portion of the upcoming sale’s proceeds will be used to buy back some of Clovis’ current bonds that come due in 2021. The company plans to use the rest of the funds for general administrative purposes, research and development, acquiring or licensing other drug candidates and managing other debt obligations.

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The sale comes a week after Clovis reported a loss-per-share of $2.27 for Q2 2019, far greater than analyst estimates of a loss of $1.71 per share. 

Clovis stock fell 13.04 percent to $7.80 as of 3:15 p.m. Mountain Time in after-hours trading.