Calidi Biotherapeutics Inc. (NYSE American: CLDI), a clinical-stage biotechnology company at the forefront of developing targeted therapies for genetic medicine delivery, has successfully raised $4.6 million through a definitive warrant exercise agreement. This financial boost comes from the immediate cash exercise of outstanding warrants for 6,595,000 shares of common stock at a reduced price of $0.70 per share. The agreement not only underscores investor confidence in Calidi's pioneering work but also provides the company with essential capital to further its mission of revolutionizing cancer treatment.
The proceeds from this transaction are earmarked for advancing Calidi's clinical and pre-clinical programs, bolstering its operations, and enhancing working capital. This strategic financial move is pivotal for the company as it continues to develop its proprietary stem cell-based platforms. These platforms are designed to deliver oncolytic viruses more effectively to treat various oncology indications, including high-grade gliomas and solid tumors, thereby offering hope for improved outcomes in cancer therapy.
Calidi's innovative approach involves the use of allogeneic stem cells to carry payloads of oncolytic viruses, aiming to protect, amplify, and potentiate these viruses. This method promises to enhance the efficacy of cancer treatments while minimizing risks to patient safety. Furthermore, the company's preclinical enveloped virotherapies target disseminated solid tumors, potentially addressing or even preventing metastatic disease. The dual strategy employed by Calidi represents a significant leap forward in the fight against cancer, highlighting the importance of the recent financial infusion.
Ladenburg Thalmann & Co. Inc. served as the exclusive placement agent for this transaction, facilitating the agreement that enables Calidi to issue new unregistered warrants. These warrants, exercisable in six months at $0.70 and valid for five and a half years, reflect a long-term investment in the company's vision and its potential to transform cancer treatment paradigms.
The significance of this development extends beyond Calidi Biotherapeutics, offering implications for the broader biotech and oncology sectors. By securing the necessary funding to advance its research and development efforts, Calidi is poised to make substantial contributions to the field of immuno-oncology. This progress not only benefits the scientific and medical communities but also holds promise for patients worldwide seeking more effective and safer cancer treatment options.
