Rapport Therapeutics Launches $350 Million Stock and Convertible Notes Offerings; Shares Fall 17.65% Overnight

Rapport Therapeutics, Inc. (RAPP) launched separate underwritten public offerings of $200 million of common stock and $150 million aggregate principal amount of convertible senior notes due 2032, sending shares down 17.65% to $22.68 in overnight trading. The clinical-stage biotechnology company, which develops small-molecule precision medicines for neurological and psychiatric disorders, also plans to grant underwriters 30-day options to purchase up to an additional $30.0 million of common stock and $22.5 million aggregate principal amount of notes to cover over-allotments. Concurrently, Rapport expects to enter a share purchase agreement with an investor in a separately negotiated private placement at the public offering price. Proceeds will fund RAP-219 clinical trials, research and development, and general corporate purposes, with a portion potentially allocated to strategic licensing, acquisition, and investment opportunities. Morgan Stanley, Leerink Partners and Evercore ISI are joint book-running managers; BTIG and Citizens Capital Markets are joint book-running managers for the common stock offering. RAPP closed Tuesday's trade at $27.54, up 8.72%, within a 52-week range of $23.75 to $52.93.