Company: RCUS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001724521-25-000063
Chunk: 259

Company: Arcus Biosciences, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 259
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 as of March 31, 2025. 

In 2023, we entered into an equity distribution agreement pursuant to which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $200 million. During the three months ended March 31, 2025 and 2024, there were no sales of our common stock under this agreement.

In the third quarter 2024, we obtained a $250 million term loan facility from Hercules. Under the terms of the term loan facility, $50 million was drawn at closing and an additional $100 million is committed and fully available at our sole option in minimum increments of $25 million. A second tranche of $100 million will be available to support strategic initiatives, subject to future approval by Hercules. See Note 11, Long-term debt, in Part I, Item 1, to our Condensed Consolidated Financial Statements for further discussion. 

In February 2025, we issued through an underwritten offering, 13.6 million shares of our common stock at a price of $11.00 per share, for total gross proceeds of approximately $150 million, before deducting underwriting discounts, commissions and offering expense.

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Cash Flows 

The following table summarizes our cash flow activities for each of the periods presented below (in millions): 

Three Months EndedMarch 31,Net cash provided by (used in):20252024Operating activities$(132)$(2)Investing activities$32 $(169)Financing activities$142 $229 

Operating Activities 

Net cash used in operating activities was $132 million for the three months ended March 31, 2025 compared to $2 million for the same period in the prior year. The change in operating cash flows is primarily due to the prior year receipt of the $87 million allocated to the performance obligations created by the Third Gilead Collaboration Agreement Amendment and the prior year receipt of $45 million from Taiho for development milestones and its opt-in on quemliclustat, partially offset by the current year receipts of $22 million for STAR-121 and PRISM-1.

Investing Activities 

Cash provided by investing activities for the three months ended March 31, 2025 was primarily due to net proceeds from marketable securities of $33 million.

Cash used in investing activities for the three months ended March 31, 2024 was primarily due to net purchases of marketable securities of $165 million.

Financing