BURLINGAME, Calif. - Corvus Pharmaceuticals, Inc. (NASDAQ: NASDAQ:CRVS), a clinical-stage biopharmaceutical company, announced today that it has secured approximately $30.6 million in funding through a securities purchase agreement. The agreement involves both new and existing investors and will be executed through a registered direct offering, expected to close around May 6, 2024, subject to customary closing conditions.
The offering consists of 13,512,699 shares of common stock and accompanying common warrants to purchase an additional 13,078,509 shares, at a combined price of $1.7312 per share and warrant. Additionally, pre-funded warrants to purchase 4,144,085 shares of common stock and accompanying common warrants to purchase 4,010,927 shares are being sold at a combined price of $1.7311 per pre-funded warrant and common warrant.
The pre-funded warrants, exercisable at $0.0001 per share, and the common warrants, with an exercise price of $3.50 per share, will be exercisable immediately and are set to expire on June 30, 2025. Notably, the offering did not involve underwriters or placement agents, eliminating the need for underwriting discounts or placement agent fees.
The investors participating in this offering include health-care dedicated funds such as Point72, Samlyn Capital, Armistice Capital, OrbiMed, Puissance Capital, and Altamont Pharmaceutical Holdings, along with other current investors including Corvus's CEO, Richard Miller.
Corvus's lead product candidate is soquelitinib, an oral small molecule drug designed to selectively inhibit ITK, which is being investigated as a new immunotherapy approach for various cancers and immune diseases. The company has other clinical-stage candidates in development for different cancer indications.
The information in this article is based on a press release statement from Corvus Pharmaceuticals, Inc.
InvestingPro Insights
As Corvus Pharmaceuticals, Inc. (NASDAQ: CRVS) navigates through its clinical-stage endeavors, the recent funding of approximately $30.6 million could be a pivotal step in advancing its research and development, particularly for its lead product candidate, soquelitinib. Here are some insights from InvestingPro that could help investors gauge the company’s financial health and market performance:
InvestingPro Data shows a market capitalization of 76.01 million USD, which reflects the company's current valuation in the market. Moreover, the company holds a Price to Book ratio of 2.04 as of the last twelve months ending Q4 2023. This metric can help investors understand how the market values the company's net assets. The 1 Year Price Total Return as of a recent 2023 date stands at an impressive 56.31%, indicating a substantial increase in the company's share price over the past year.
Delving into the InvestingPro Tips reveals that Corvus holds more cash than debt on its balance sheet, providing a cushion for its operations and investment activities. However, it's also notable that the company is quickly burning through cash, which is a critical factor for investors to monitor, especially for a clinical-stage biopharmaceutical company that may have significant capital requirements.
For investors looking to dig deeper into the financials and forecasts for Corvus Pharmaceuticals, InvestingPro offers additional tips. There are 9 more InvestingPro Tips available, which can provide a more comprehensive analysis of the company's financial health, including aspects like profitability, liquidity, and market performance. Interested readers can access these additional insights by visiting https://www.investing.com/pro/CRVS and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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