Full Press Release Details
Summit Therapeutics Inc.
("Summit" or the "Company")
Summit Announces Agreement For
a Fundraising of approximately $50 Million
Cambridge, MA, October 2,
2020 - Summit (NASDAQ: SMMT) today announces that it has entered into a binding agreement with the Company's
Chief Executive Officer and Executive Chairman, Robert W. Duggan, for a fundraising of approximately $50 million (the "Fundraising")
through the issuance and sale in a private placement of shares of common stock to Mr. Duggan. The transaction provides Summit the
ability to place up to 14,970,060 new shares of common stock with Mr. Duggan in exchange for up to $50 million in new investment.
The aggregate purchase price will reflect a price of $3.34 per share of common stock. The price per share of the common stock sold
in the Fundraising represents the Nasdaq closing price per share immediately preceding the entry into the binding agreement for
The purchase agreement also affords
Summit the flexibility to place fewer than the maximum shares of common stock with Mr. Duggan, in the Company's discretion,
provided that no less than 9,730,539 shares of common stock shall be sold to Mr. Duggan in the offering. Prior to the closing of
the Fundraising, which Summit expects to occur in approximately two weeks' time, the Company intends to engage with third
parties who may have an interest in making an investment in the Company on similar terms as those agreed with Mr. Duggan.
Summit believes that the net proceeds
of the Fundraising will extend its cash runway to the third quarter of 2021. The Company expects to use these funds to support
the following activities:
securities issued to Mr. Duggan at the closing and any securities issued to third parties on similar terms on or around such date
will not be registered under the Securities and Exchange Act of 1933, as amended, and may not be offered or sold absent registration
or an applicable exemption from registration requirements.
Summit Forward-looking Statements
Any statements in this press release
about the Company's future expectations, plans and prospects, including but not limited to, statements about the timing
for the closing of the Fundraising, clinical and preclinical development of the Company's product candidates, the therapeutic
potential of the Company's product candidates, the potential commercialization of the Company's product candidates,
the timing of initiation, completion and availability of data from clinical trials, the potential submission of applications for
marketing approvals and other statements containing the words "anticipate," "believe," "continue,"
"could," "estimate," "expect," "intend," "may," "plan,"
"potential," "predict," "project," "should," "target," "would,"
and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform
Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various
important factors, including: the uncertainties inherent in the initiation of future clinical trials, availability and timing
of data from ongoing and future clinical trials and the results of such trials, global public health crises, including the coronavirus
COVID-19 outbreak, that may affect timing and status of our clinical trials and operations, whether preliminary results from a
clinical trial will be predictive of the final results of that trial or whether results of early clinical trials or preclinical
studies will be indicative of the results of later clinical trials, expectations for regulatory approvals, laws and regulations
affecting government contracts and funding awards, availability of funding sufficient for the Company's foreseeable and
unforeseeable operating expenses and capital expenditure requirements and other factors discussed in the "Risk Factors"
section of filings that the Company makes with the Securities and Exchange Commission, including the Company's Current Report
on Form 8-K filed on September 29, 2020 with certain disclosures regarding the three and six months ended June 30, 2020. Accordingly,
readers should not place undue reliance on forward-looking statements or information. In addition, any forward-looking statements
included in this press release represent the Company's views only as of the date of this release and should not be relied
upon as representing the Company's views as of any subsequent date. The Company specifically disclaims any obligation to
update any forward-looking statements included in this press release.