SAN DIEGO - Calidi Biotherapeutics, Inc. (NYSE AMERICAN: CLDI), a clinical-stage biotechnology company, announced today its intention to conduct a public offering of its common stock and potentially pre-funded warrants as an alternative. The company, which specializes in the development of targeted immunotherapies for cancer treatment, stated that the size and terms of the offering are currently undetermined and subject to market conditions.
The securities will be offered under a shelf registration statement that was previously declared effective by the United States Securities and Exchange Commission (SEC) on October 10, 2024. Ladenburg Thalmann & Co. Inc. has been appointed as the exclusive placement agent for the offering.
Calidi's decision to sell additional shares is aimed at raising capital for general corporate purposes and to bolster its working capital. The company is known for its novel stem cell-based platforms that carry oncolytic viruses, which are intended for use in treating various oncology indications, such as high-grade gliomas and solid tumors.
The offering's specifics, including the number of shares or pre-funded warrants to be sold, will be detailed in a preliminary prospectus supplement and accompanying prospectus that are to be filed with the SEC. Interested investors are directed to the SEC's website or may contact Ladenburg Thalmann & Co. Inc. for further information on obtaining these documents.
Investors are cautioned that this announcement does not constitute an offer to sell or a solicitation of an offer to buy the described securities. The sale of these securities will not proceed in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Calidi Biotherapeutics, headquartered in San Diego, California, is pursuing a dual approach in its fight against cancer, aiming to treat or potentially prevent metastatic disease with its clinical and preclinical therapies.
The information in this article is based on a press release statement from Calidi Biotherapeutics, Inc.
In other recent news, Calidi Biotherapeutics has secured a $2 million investment through a registered direct offering and a concurrent private placement, issuing 2,050,000 shares of common stock to certain institutional investors. The company also issued series E and F warrants, each allowing the purchase of up to 2,050,000 shares of common stock. Ladenburg Thalmann & Co. Inc. served as the exclusive placement agent for these offerings.
The company has seen significant changes in its board of directors. Alan Stewart was elected as a Class I Director, while George Ng chose not to stand for re-election, reducing the board size from six to five members. Marcum LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
Baird maintained an Outperform rating on Calidi Biotherapeutics, albeit with a reduced target price. The company implemented a 1-for-10 reverse stock split, raised approximately $2.1 million through the exercise of Series B and C warrants, and set terms for a public offering to raise an estimated $6.1 million.
Dr. George E. Peoples, a renowned cancer immunotherapy expert, joined the board. The company presented new data at the American Association for Cancer Research Annual Meeting 2024, focusing on the effectiveness of antitumor virotherapies. These are among the recent developments at Calidi Biotherapeutics.
InvestingPro Insights
Calidi Biotherapeutics' decision to conduct a public offering comes at a critical time for the company, as revealed by recent InvestingPro data. The company's market capitalization stands at a modest $23.44 million, reflecting its clinical-stage status and the speculative nature of its biotechnology ventures.
InvestingPro Tips highlight that Calidi is "quickly burning through cash" and that "short term obligations exceed liquid assets." These factors likely contribute to the company's decision to raise additional capital through this offering. The company's financial position is further underscored by its negative EBITDA of -$29.18 million for the last twelve months as of Q2 2024, indicating significant ongoing research and development expenses typical of clinical-stage biotech firms.
Despite recent financial challenges, Calidi has seen a remarkable short-term market performance. InvestingPro data shows a 45.52% price return over the past week and a staggering 99.06% return over the last month. This recent surge in investor interest could potentially be leveraged by the company to secure more favorable terms in its upcoming offering.
However, it's important to note that according to InvestingPro Tips, analysts do not anticipate the company will be profitable this year, and the stock's valuation "implies a poor free cash flow yield." These insights suggest that while the recent market enthusiasm may be beneficial for the offering, investors should carefully consider the company's long-term financial prospects.
For a more comprehensive analysis, InvestingPro offers 12 additional tips for Calidi Biotherapeutics, providing investors with a deeper understanding of the company's financial health and market position.
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