BUZZ - Rapport Therapeutics shares plummet after launching stock and convertible bond issuance

October 27 - ** Rapport Therapeutics RAPP.O shares fell 20% after hours to $22 as the company seeks financing

** The biotechnology company focusing on neurological disorders has launched a (link) public offering, including $200 million in stock and $150 million in convertible bonds due in 2032; it also plans to sell shares to an investor through a concurrent private placement

** The company plans to use the net proceeds from this transaction to fund clinical trials, research and development, and other purposes related to RAP-219, its treatment for manic episodes in bipolar disorder

** Morgan Stanley, Leerink, and Evercore are serving as lead underwriters for both the public and private offerings

** On October 20, RAPP shares closed up 2.7% at $29.37 after the company announced that RAP-219 met (link) primary and secondary endpoints in a mid-stage clinical trial

** The Boston-based company has about 47.98 million shares outstanding and a current market value of approximately $1.3 billion

** On Tuesday, shares closed up 8.7% at $27.54. The stock has fallen 34% over the past three months and is down 9% year to date

** The company, backed by Johnson & Johnson (JNJ.N), went public in June 2024 at an IPO price of $17 per share (link)

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