SAN DIEGO - Calidi Biotherapeutics, Inc. (NYSE American: CLDI), a clinical-stage biotechnology company, has announced the terms for its public offering, aiming to raise approximately $6.1 million. The offering includes 15,197,500 shares of common stock and accompanying warrants, with an effective combined price of $0.40 per share and common warrants.
The company's public offering consists of Series A, B, and C Common Warrants, with the common warrants exercisable at $0.60 per share. These warrants are set to be immediately exercisable upon issuance, with varying expiration periods: five years for Series A Common Warrants and Series B-1 and C-1 Common Warrants, twelve months for Series B Common Warrants, and four months for Series C Common Warrants.
The expected closing date for the offering is April 18, 2024, contingent upon customary closing conditions. Calidi Biotherapeutics plans to allocate a portion of the net proceeds for working capital, general corporate purposes, and to further its pre-clinical and clinical trials, depending on the actual proceeds received.
Ladenburg Thalmann & Co. Inc. is the sole placement agent for the offering, which is made possible by a registration statement on Form S-1 (File No. 333-276741) filed with the Securities and Exchange Commission (SEC) and which became effective on April 15, 2024.
Calidi Biotherapeutics specializes in immunotherapies for cancer treatment, using allogeneic stem cells to deliver oncolytic viruses to combat high-grade gliomas and solid tumors. Their technology aims to enhance the efficacy and safety of oncolytic virus-based therapies, potentially addressing metastatic diseases.
The press release emphasizes that this announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities, and the sale of these securities will not be lawful in any jurisdiction where such offer, solicitation, or sale would be prohibited before registration or qualification under the securities laws of that jurisdiction.
This information is based on a press release statement from Calidi Biotherapeutics, Inc.
InvestingPro Insights
As Calidi Biotherapeutics, Inc. (NYSE American: CLDI) embarks on its public offering to support its innovative cancer treatment technologies, potential investors may weigh the company's financial health and market performance.
According to InvestingPro data, Calidi Biotherapeutics currently has a market capitalization of $21.32 million USD. The company's stock has experienced significant price volatility, with a 1-month total price return showing a sharp decline of 40.35%. Over the last year, the price return has plummeted by an alarming 96.3%, reflecting investor concerns and market challenges.
Moreover, an InvestingPro Tip highlights that Calidi Biotherapeutics has been quickly burning through cash, which is a critical factor to consider when evaluating the company's long-term sustainability. The company's financials also reveal a negative P/E ratio of -0.47 for the last twelve months as of Q4 2023, suggesting that the company is not currently profitable.
Investors interested in a deeper analysis can find additional InvestingPro Tips that further elucidate Calidi Biotherapeutics' financial position and market outlook. For instance, the company's stock generally trades with high price volatility and suffers from weak gross profit margins. Prospective investors may also note that analysts do not anticipate the company will be profitable this year.
In total, there are 13 additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/CLDI for those seeking a comprehensive understanding of the company's prospects. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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