Rapport Therapeutics plunges on stock, convertible bond sales

** Shares of biotech firm Rapport Therapeutics RAPP.O plunge 24.4% before the bell to $20.81, a more than 1-yr low, after securing capital raise

** Neurological disorders-focused firm announces pricing roughly 9.5 mln shares, including pre-funded warrants, at $21 for approx $200 mln and $150 mln 2.25% convertible bonds (CBs) due Dec 1, 2032

** Equity offering prices at 23.7% discount to stock's last close; conversion price on the CBs of $26.775 is 27.5% above the equity offering price

** RAPP also sells about 1.4 mln shares worth approx $30 mln to a certain investor in concurrent private placement

** Co plans to use net proceeds from the transactions to fund clinical trials advancing its bipolar mania treatment, RAP-219, R&D, among other purposes

** Morgan Stanley, Leerink and Evercore leading the public offerings and private placement

** On Oct 20, RAPP shares ended session up nearly 3% at $29.37 after co said RAP-219 met the main and secondary goals in mid-stage trial

** Boston-headquartered RAPP has ~47.98 mln shares outstanding

** Through Tues, RAPP shares shed 34% over the past three months, leaving them down 9% YTD

** Co, backed by Johnson & Johnson JNJ.N, went public in 2024 IPO priced at $17