Calidi Biotherapeutics Secures $4.6 Million via Warrant Exercise
Calidi Biotherapeutics Secures Funding Through Warrant Exercise
Calidi Biotherapeutics, Inc. (NYSE American: CLDI), based in San Diego, is making headlines with its latest financial maneuver. The clinical-stage biotechnology company dedicated to pioneering new therapies, recently entered a definitive agreement to exercise several outstanding warrants. This initiative allows for the purchase of up to 6,595,000 shares of common stock at a reduced exercise price of just $0.70, potentially generating $4.6 million in gross proceeds.
Details of the Agreement
The company has secured these funds through the immediate exercise of Series A, Series B-1, Series C-1, Series D, Series E, and Series F Warrants, known collectively as the Existing Warrants. This strategic decision highlights Calidi’s commitment to advancing its pipeline and operational goals.
Acting as the exclusive placement agent for this offering is Ladenburg Thalmann & Co, Inc., ensuring that the transaction processes smoothly and efficiently.
New Warrants Issued
In return for participating in this immediate exercise offer, Calidi Biotherapeutics plans to issue new unregistered warrants for the same number of shares, also priced at $0.70 each. These new warrants will be available for exercise six months post-issuance, with a lifespan of five and a half years, offering investors a significant opportunity to capitalize on future growth.
Expected Closing and Use of Proceeds
The anticipated closing of this offering is expected to occur shortly, subject to usual closing conditions. Calidi Biotherapeutics intends to allocate these funds primarily toward advancing its clinical and pre-clinical programs, alongside maintaining operational expenses and working capital. This strategic utilization showcases the company’s dedication to enhancing its innovative therapeutic offerings.
Investment Overall
The new warrants being introduced are categorized under a private placement, adhering to Section 4(a)(2) of the Securities Act of 1933. This means they have not been registered under the Act or applicable state securities laws, making them restricted in terms of trading. However, Calidi Biotherapeutics has pledged to file a registration statement with the SEC to facilitate the resale of shares that may arise from these new warrants.
About Calidi Biotherapeutics
Calidi Biotherapeutics, trading under NYSE American: CLDI, is at the forefront of biotechnology, focusing on delivering groundbreaking therapies. The company’s flagship Redtail platform is a culmination of years of development geared towards creating viral vectors capable of bypassing immune detection. This innovation aims to efficiently deliver genetic therapies to target diseases, especially in oncology.
Therapeutic Pipeline
The company's lead candidate, currently undergoing IND-enabling studies, targets serious conditions like non-small cell lung cancer and ovarian cancer. With an emphasis on treatments for diseases marked by substantial unmet medical needs, Calidi is poised to make significant strides. Their investigational products also include intratumoral virotherapies, which are designed for localized cancer treatment, demonstrating the company’s versatility and commitment to patient care.
Future Prospects
With the recent funding secured through the exercise of warrants, the future looks bright for Calidi Biotherapeutics. The capital raised will support its innovative research and development efforts, significantly contributing to its mission of delivering effective therapeutic solutions in the field of biotechnology.
Frequently Asked Questions
What is the significance of the warrant exercise?
The exercise of warrants allows Calidi Biotherapeutics to raise essential funds to support its clinical and operational goals.
How much funding has Calidi raised through this exercise?
Through the exercise of the existing warrants, Calidi expects to raise approximately $4.6 million in gross proceeds.
Who is acting as the placement agent for this offering?
Ladenburg Thalmann & Co, Inc. is serving as the exclusive placement agent for the warrant exercise offering.
What are the new warrants issued by Calidi Biotherapeutics?
Calidi will issue new unregistered warrants allowing the purchase of shares at an exercise price of $0.70, effective six months from their issuance.
What areas is Calidi focused on in its biotech advancements?
Calidi is particularly focused on developing therapies for oncology through its proprietary Redtail platform, emphasizing unmet medical needs.
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