Company: RCUS
Filing Date: 2025-02-18
Form Type: 424B5
Source: 0001193125-25-028669
Chunk: 11

Company: Arcus Biosciences, Inc.
Filing Date: 2025-02-18
Form: 424B5
Chunk 11
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 we may
invest the net proceeds from this offering in a manner that does not produce income or that loses value. Our failure to apply these funds effectively could have a material adverse effect on our business and cause the price of our common stock to
decline.

If you purchase shares of common stock in this offering, you will experience immediate dilution in your investment.

Purchasers of common stock in this offering will pay a price per share in this offering that exceeds the net tangible book value per share of our common stock.
After giving effect to the aggregate of 13,636,364 shares of common stock being sold at an offering price of $11.00 per share, for aggregate net proceeds of approximately $141.6 million after deducting underwriting discounts and
commissions and estimated offering expenses payable by us, if you purchase shares of our common stock in this offering, you will experience immediate dilution of $4.28 per share, representing the difference between the offering price and our as
adjusted net tangible book value per share as of September 30, 2024, after giving effect to this offering. See the section below titled “Dilution” for a more detailed illustration of the dilution you would incur if you purchase common
stock in this offering.

You may experience further dilution if we issue additional equity securities in future fundraising transactions.

To raise additional capital, we may in the future offer additional shares of our common stock or other securities convertible into or exchangeable
for our common stock at prices that may not be the same as the price per share in this offering. We may sell shares or other securities in any other offering at a price per share that is less than the price per share paid by investors in this
offering, and investors purchasing shares or other securities in the future could have rights superior to existing stockholders. Gilead has the right, at its option until July 2025, to purchase up to 35% of our then-outstanding common stock at a
purchase price equal to the greater of $33.54 per share and a 20% premium to the trading price of our common stock at the time of purchase. The price per share at which we sell additional shares of our common stock, or securities convertible or
exchangeable into common stock, in future transactions may be higher or lower than the price per share paid by investors in this offering. Further, we have a significant number of stock options and restricted stock units outstanding. The exercise of
outstanding stock options and the