Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information for Our Common Stock
Our common stock has been publicly traded on the Nasdaq Global Select Market under the symbol “ORIC.” since April 24, 2020. Prior to that date, there was no public trading market for our common stock.
Holders of Record
As of December 31, 2020, there were approximately 46 stockholders of record of our common stock. The actual number of stockholders is greater than this number of record holders and includes stockholders who are beneficial owners but whose shares are held in street name by brokers and other nominees.
Dividend Policy
We have not declared or paid any cash dividends on our capital stock since our inception. We intend to retain future earnings, if any, to finance the operation and expansion of our business and do not anticipate paying any cash dividends in the foreseeable future. Payment of future cash dividends, if any, will be at the discretion of our board of directors after taking into account various factors, including our financial condition, operating results, current and anticipated cash needs, the requirements and contractual restrictions of then-existing debt instruments, and other factors that our board of directors deems relevant.
Stock Performance Graph
This performance graph shall not be deemed “soliciting material” or to be “filed” with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any of our filings under the Securities Act, except to the extent that we specifically incorporate this information by reference therein, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.
The following graph compares the cumulative total return to stockholder return on our common stock relative to the cumulative total returns of the Nasdaq Composite Index and the Nasdaq Biotechnology Index. An investment of $100 is assumed to have been made in our common stock and each index on April 24, 2020 (the first day of trading of our common stock with a closing price on that date of $25.77) and its relative performance is tracked through December 31, 2020. Pursuant to applicable SEC rules, all values assume reinvestment of the full amount of all dividends; however, no dividends have been declared on our common stock to date. The stockholder returns shown on the graph below are based on historical results and are not indicative of future performance, and we do not make or endorse any predictions as to future stockholder returns.
101
Recent Sales of Unregistered Securities
None.
Use of Proceeds
The Registration Statements on Form S-1 (File Nos. 333-236792 and 333-237814) were declared effective by the SEC for our IPO of common stock on April 23, 2020. We started trading on the Nasdaq Global Select Market on April 24, 2020. In connection with our IPO, we sold an aggregate of 8,625,000 shares of common stock at a public offering price of $16.00 per share, including 1,125,000 shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares. The underwriters for our IPO were J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, and Guggenheim Securities, LLC. The aggregate gross proceeds received by the Company from the offering, excluding underwriting discounts and commissions and offering expenses, were $138.0 million. No offering expenses were paid or are payable, directly or indirectly, to our directors or officers, to persons owning 10% or more of any class of our equity securities or to any of our affiliates.
The Registration Statements on Form S-1 (File Nos. 333-250001 and 333-250053) were declared effective by the SEC for our follow-on offering of common stock on November 12, 2020. In connection with our follow-on offering, we sold an aggregate of 5,796,000 shares of common stock at a public offering price of $23.00 per share, including 756,000 shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares. The underwriters for our follow-on offering were J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, Guggenheim Securities, LLC and Oppenheimer & Co. Inc. The aggregate gross proceeds received by the Company from the offering, excluding underwriting discounts and commissions and offering expenses was $133.3 million. No offering expenses were paid or are payable, directly or indirectly, to our directors or officers, to persons owning 10% or more of any class of our equity securities or to any of our affiliates.
There has been no material change in the planned use of proceeds from our public offerings as described in our final prospectuses filed with the SEC pursuant to Rule 424(b)(4) on April 24, 2020 and November 13, 2020. We invested the funds received in short- and intermediate-term, interest-bearing obligations, investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the U.S. government.
102
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
None.
Item 6. Selected Financial Data
The following tables summarize our selected financial data for the periods and as of the dates indicated. We derived our statement of operations data for the years ended December 31, 2020, 2019, and 2018, and the balance sheet data as of December 31, 2020, 2019, and 2018, from our audited financial statements and related notes. Our historical results are not necessarily indicative of the results that may be expected in the future. You should read the following selected financial data in conjunction with our financial statements and the related notes appearing elsewhere in this report and the information in the section titled and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
(In thousands, except per share data)
Years Ended December 31,
Statement of operations data:
2020
2019
2018
Operating expenses:
Research and development
$
35,921
$
22,844
$
19,026
Acquired in-process research and development
24,843
—
—
General and administrative
13,422
5,725
3,345
Total operating expenses
74,186
28,569
22,371
Loss from operations
(74,186
)
(28,569
)
(22,371
)
Other income:
Interest income, net
306
1,397
775
Other income
177
289
233
Total other income
483
1,686
1,008
Net loss
$
(73,703
)
$
(26,883
)
$
(21,363
)
Other comprehensive loss:
Unrealized loss on available-for-sale securities
(31
)
—
—
Comprehensive loss
$
(73,734
)
$
(26,883
)
$
(21,363
)
Net loss per share, basic and diluted
$
(3.36
)
$
(14.15
)
$
(12.32
)
Weighted-average shares outstanding, basic and diluted
21,942,476
1,899,348
1,734,115
(In thousands)
December 31,
Balance sheet data:
2020
2019
2018
Cash and cash equivalents
$
78,446
$
89,159
$
42,636
Short-term investments
215,154
—
—
Total assets
298,997
94,093
46,734
Accrued liabilities
8,245
5,202
2,150
Total liabilities
9,221
6,119
3,894
Convertible preferred stock
—
178,058
107,266
Accumulated deficit
(166,393
)
(92,690
)
(65,807
)
Total stockholders' equity (deficit)
289,776
(90,084
)
(64,426
)
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.