By Connor Hart
Shares of Clovis Oncology Inc. fell nearly 16% after reporting a second-quarter loss and revealing it needed additional capital.
The company said that based on its current cash, cash equivalents and liquidities, it will need to raise additional capital in the near term to fund its operating plan.
A share consolidation was proposed, but was not approved by shareholders at the annual meeting.
Without the approval of an increase in authorized shares, the company said it was unable to raise additional capital through public offerings or private equity and, therefore, it was exploring alternatives and strategies to increase the number of shares.
The company announced a second-quarter loss of $71.3 million on Monday, compared with a loss of $66.4 million a year earlier. The loss per share was 50 cents versus a loss of 61 cents.
Revenue for the quarter ended June 30 fell to $32.1 million from $36.8 million in the prior year quarter. Analysts polled by FactSet expected revenue of $37.2 million.
The company’s stock price closed Aug. 5 at $1.66, before falling to $1.40 in premarket trading on Monday. The price is down around 39% so far this year and around 66% in the last 52 weeks.
Write to Connor Hart at [email protected]