SAN DIEGO - Calidi Biotherapeutics, Inc. (NYSE American: CLDI), a biotechnology firm focused on immunotherapies for cancer, has announced a definitive agreement for the exercise of Series B and C warrants, which is expected to generate approximately $2.1 million in gross proceeds. The exercised warrants will allow the purchase of up to 10,698,000 shares of the company's common stock at a reduced price of $0.20 per share.
The original Series B and C warrants, issued in April 2024, came with terms of twelve months and four months, respectively. In addition to the exercise of these warrants, Calidi is issuing new unregistered warrants for the same number of shares, with an exercise price of $0.30, subject to shareholder approval, and a term of five and a half years from the date of issuance. Furthermore, the company has also issued Series B-1 and C-1 warrants with an exercise price of $0.20 per share, expiring five years from their issuance date.
Ladenburg Thalmann & Co, Inc. is serving as the exclusive placement agent for this transaction. The offering is expected to close around June 3, 2024, contingent upon customary closing conditions. The capital raised is intended to fund Calidi's clinical and pre-clinical programs, as well as ongoing operational expenses and working capital needs.
The new warrants and underlying shares are being offered in a private placement under specific securities regulations and have not been registered under the Securities Act of 1933 or applicable state securities laws. Consequently, they may not be sold in the U.S. without registration or an exemption from registration requirements. Calidi has committed to filing a registration statement with the SEC for the resale of the shares issuable upon exercise of the new warrants.
This financial movement comes as the company progresses in its mission to develop stem cell-based platforms that carry oncolytic viruses, targeting multiple oncology indications such as high-grade gliomas and solid tumors. Calidi's approach aims to enhance the efficacy of oncolytic viruses and improve patient safety.
The information reported is based on a press release statement from Calidi Biotherapeutics.
InvestingPro Insights
As Calidi Biotherapeutics, Inc. (NYSE American: CLDI) continues to navigate the biotechnology landscape with its recent financial moves, it's crucial to consider the company's market performance and analyst insights. Calidi's market capitalization stands at a modest $14.69 million, reflecting its status as a small-cap company in a highly competitive and capital-intensive industry. Additionally, the company's price-to-earnings (P/E) ratio is currently negative at -0.18, indicating that it is not generating profits at this time—a common occurrence for many biotech firms in their developmental stages.
Despite the challenges, Calidi has seen a significant return over the last week with a 31.12% increase in its stock price, which may reflect investor optimism regarding the potential of its immunotherapy platforms. However, it's important to note that the company's stock has experienced high price volatility, and it has not been profitable over the last twelve months. This could be a cause for caution among potential investors. Moreover, with a concerning -97.12% one-year price total return, the stock has seen a steep decline, emphasizing the risks involved in investing in the biotech sector.
InvestingPro Tips highlight that while Calidi has a high shareholder yield, the company is quickly burning through cash. These insights, along with the fact that analysts do not anticipate the company will be profitable this year, provide a comprehensive picture of the risks and opportunities associated with investing in Calidi Biotherapeutics. For those interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CLDI, which could offer further guidance on the stock's prospects.
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