Benzinga | Jun 30, 2021 07:49AM EDT

Cerevel Therapeutics Shares Drops After Launching Equity Offering Of 14M Shares

* Cerevel Therapeutics Holdings Inc (NASDAQ:CERE) Tuesday after-hours commenced an underwritten public offering of 14 million common shares.

* Underwriters have an option to purchase up to an additional 2.1 million shares.

* J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Jefferies LLC, and Stifel, Nicolaus & Company Incorporated are acting as joint book-running managers for the offering.

* Loop Capital Markets, LLC and Siebert Williams Shank & Co., LLC are acting as co-managers.

* Proceeds will be used to support the clinical development of CVL-231, CVL-354, and other early discovery initiatives.

* The company's stock soared after CVL-231 in adult patients with schizophrenia demonstrated clinically meaningful antipsychotic activity with an overall well-tolerated profile compared with placebo.

* See the offering prospectus here.

* Price Action: CERE shares are down 8.99% at $27.02 during the premarket session on the last check Wednesday.