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Castle Biosciences Prices $74M Public Offering

NEW YORK – Castle Biosciences said on Thursday that it has priced its underwritten public offering of 2 million shares of its common stock at $37 per share.

The Friendswood, Texas-based company expects gross proceeds of $74 million from the offering. In addition, Castle Bio has granted the underwriters a 30-day option to purchase up to an additional 300,000 shares of stock at the offering price. The offering is expected to close on June 29.

In a filing with the US Securities and Exchange Commission, the company said the principal purpose of the offering is to obtain additional capital to support its operations, and that it doesn't have any specific plan for the use of the net proceeds. However, Castle Bio noted that it does intend to use the proceeds to further support and increase its R&D activities — including those to support the development of its product pipeline — to expand its commercial organization, and for working capital and other general corporate purposes.

SVB Leerink and Baird are acting as joint book-running managers for the offering and representatives of the underwriters. Canaccord Genuity is a passive book-runner and BTIG is acting as co-manager for the offering.

The company's shares fell 2 percent to $38.52 in morning trading on the Nasdaq.