SAN DIEGO - Calidi Biotherapeutics, Inc. (NYSE AMERICAN: CLDI), a clinical-stage biotechnology company, announced today it has secured a $2 million investment through a combination of a registered direct offering and a concurrent private placement. The company issued 2,050,000 shares of common stock at $1.00 each to certain institutional investors.
Concurrently, Calidi will issue series E and series F warrants in a private placement, each allowing purchase of up to 2,050,000 shares of common stock. The series E warrants, with a $1.13 exercise price, will be exercisable six months post-issuance and valid for one year. Series F warrants, also priced at $1.13, will be exercisable in six months but have a five-year term.
The closing of these transactions is anticipated to occur around October 24, 2024, subject to standard closing conditions. Ladenburg Thalmann & Co. Inc. is the exclusive placement agent for the offerings.
Before deduction of placement agent fees and other expenses, the gross proceeds from these offerings are expected to be approximately $2 million. Calidi intends to utilize the net proceeds for working capital, general corporate purposes, and to advance pre-clinical and clinical trials.
The securities offered (excluding the warrants and shares underlying the warrants) are pursuant to a shelf registration statement declared effective by the SEC on October 10, 2024. The offerings are being made solely through a prospectus, which includes a prospectus supplement, part of the effective registration statement, to be filed with the SEC.
The warrants are offered in a private placement under the Securities Act of 1933, as amended, and are not registered under the Act or applicable state securities laws. Therefore, they may not be offered or sold in the United States absent an effective registration statement or an exemption from registration requirements.
Calidi Biotherapeutics focuses on targeted immunotherapies and is developing stem cell-based platforms to enhance the efficacy of oncolytic viruses against various cancers. This financing is part of the company's broader strategy to advance its clinical and pre-clinical programs.
This news is based on a press release statement from Calidi Biotherapeutics, Inc.
In other recent news, Calidi Biotherapeutics has seen significant changes in its board of directors and financial developments. Alan Stewart was elected as a Class I Director, while George Ng opted not to stand for re-election, reducing the board size from six to five members. The company's shareholders also ratified the appointment of Marcum LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
In financial developments, Baird maintained an Outperform rating on Calidi Biotherapeutics, albeit with a reduced target price. The company implemented a 1-for-10 reverse stock split and raised approximately $2.1 million through the exercise of Series B and C warrants. Additionally, it set terms for a public offering to raise an estimated $6.1 million.
The company also welcomed Dr. George E. Peoples, a renowned cancer immunotherapy expert, to its board. In research news, Calidi Biotherapeutics presented new data at the American Association for Cancer Research Annual Meeting 2024, focusing on the effectiveness of antitumor virotherapies. Ladenburg Thalmann & Co, Inc. served as the exclusive placement agent for these transactions. These are among the recent developments at Calidi Biotherapeutics.
InvestingPro Insights
Calidi Biotherapeutics' recent $2 million investment comes at a critical time for the company, as revealed by InvestingPro data. With a market capitalization of just $10.52 million, this capital injection represents a significant boost to the company's financial resources.
InvestingPro Tips highlight some challenges facing Calidi. The company is "quickly burning through cash" and "suffers from weak gross profit margins," which underscores the importance of this new funding for its ongoing operations and clinical trials. Moreover, the tip that "net income is expected to drop this year" aligns with the company's focus on using the proceeds for working capital and advancing its research programs.
The stock's performance has been concerning, with InvestingPro data showing a year-to-date price total return of -92.52% as of the latest available data. This context makes the $1.00 per share offering price particularly noteworthy, as it represents a premium to the previous closing price of $1.13.
Investors considering Calidi should note that InvestingPro Tips indicate the company "is not profitable over the last twelve months" and "analysts do not anticipate the company will be profitable this year." These insights, along with 7 additional tips available on InvestingPro, provide a comprehensive view of Calidi's financial health and market position.
For those seeking a deeper analysis, InvestingPro offers a total of 10 tips for Calidi Biotherapeutics, providing valuable context for this biotechnology investment.
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