Latham & Watkins Advises on Verrica Pharmaceuticals Inc.’s Public Offering

Verrica Pharmaceuticals Inc. (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, has announced the pricing of an underwritten public offering of 44,964,045 shares of its common stock and, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase 2,235,955 shares of its common stock, and in either case, accompanying Series A warrants to purchase 23,600,000 shares of its common stock at an exercise price of US$1.0680 per share of common stock and Series B warrants to purchase 23,600,000 shares of its common stock at an exercise price of US$1.3350 per share of common stock, at a combined public offering price of US$0.89 per share of common stock and accompanying Series A and Series B warrants (or US$0.8899 per pre-funded warrant and accompanying Series A and Series B warrants). All of the securities being sold in the offering are being sold by Verrica. The offering is expected to close on November 22, 2024, subject to the satisfaction of customary closing conditions. Verrica also granted the underwriter an option for a period of 30 days to purchase up to 7,080,000 additional shares of the Company’s common stock and/or Series A warrants to purchase up to 3,540,000 additional shares of its common stock and Series B warrants to purchase up to 3,540,000 additional shares of its common stock at the public offering price, less the underwriting discounts and commissions. The gross proceeds from the offering, before deducing the underwriting discounts and commissions and offering expenses payable by Verrica and assuming no exercise of the pre-funded warrants or accompanying Series A and Series B warrants, are expected to be approximately US$42 million.
 
Latham & Watkins LLP represented the underwriters in the offering with a capital markets team led by New York partners Nathan Ajiashvili and Salvatore Vanchieri, with associates Sofia Sitterson and Ashley Lee.