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Castle Biosciences Prices $232M Public Offering of Common Stock

NEW YORK – Castle Biosciences said after the close of the market on Tuesday that it has priced an underwritten public offering of 4 million shares of its common stock at $58 per share.

The company expects $232 million in gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses. In addition, Castle has granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of common stock at the offering price. The offering is expected to close on or about December 18.

In a filing with the US Securities and Exchange Commission, the company said the principal purpose of the offering is to obtain additional capital to support its operations, but that it has no specific plan for the use of the net proceeds. It may use the funds for various purposes, including the advancement of its product pipeline, additional support for currently marketed products, payment of amounts owed under its loan agreement, and for working capital and other general corporate purposes.

Castle noted that if it does use a portion of the net proceeds to pay off debts under its loan and security agreement with Oxford Finance and Silicon Valley Bank, the payment would be in the amount of approximately $22 million.

SVB Leerink and Baird are acting as joint bookrunning managers in the offering. Canaccord Genuity is acting as passive bookrunner, and BTIG and Lake Street Capital Markets are acting as co-managers for the offering.

On Wednesday morning, Castle's shares opened down a fraction of a percent at $60.75 on the Nasdaq.

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