Health and Healthcare
Caladrius Bio Jumps on Private Placement Deal
Published:
Last Updated:
Caladrius Biosciences Inc. (NASDAQ: CLBS) watched its shares soar on Thursday after the company announced a private placement offering. In terms of the specifics, the company entered into securities purchase agreements with several accredited investors for the sale of 4,449,153 shares of its common stock in private placements of $21 million.
The private placements were priced at $4.72 per share of common stock, which represented the closing price of the company’s common stock on September 13. These private placements do not include any stock purchase warrants or any future price adjustments.
Note that Caladrius has a pre-existing relationship with each of these investors, including its now largest institutional shareholder and its strategic collaborator, Sanford Health, one of the largest health systems in the United States. Sanford, which includes Sanford Research, a nonprofit research organization focused on finding a cure for type 1 diabetes, has agreed to invest $5 million in this transaction.
At the same time as these private placements, Caladrius entered into a definitive agreement with Aspire Capital, providing for the sale of 847,458 shares at the aforementioned price.
According to the release:
Each of the investors in the private placements will invest pro rata in two tranches: (i) $12.6 million is expected to close- on or about September 19, 2016, subject to satisfaction of customary closing conditions, and (ii) $8.4 million is expected to close upon the enrollment of 70 patients in the Company’s Phase 2 Sanford Project: T-Rex Study clinical trial for CLBS03 and the satisfaction of other customary closing conditions. The Company presently anticipates that it could achieve the enrollment of 70 patients as early as mid-2017.
The company intends to use the net proceeds from the transactions for execution of its T-Rex Study, principal and interest payments on its loan from Oxford Finance, as well as for working capital and general corporate purposes.
Shares of Caladrius were last seen up about 16% at $5.03, with a consensus analyst price target of $32.67 and a 52-week trading range of $4.00 to $19.20.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
