Calidi Biotherapeutics Inc. (NYSE American: CLDI), a clinical-stage biotechnology company, has priced an underwritten public offering for gross proceeds of $6 million before expenses. The offering consists of approximately 1.47 million common stock units priced at $2.00 each and about 1.53 million pre-funded warrant units priced at $1.999 each, both paired with Series I warrants exercisable at $2.00 per share for five years. Ladenburg Thalmann served as sole book-running manager with Laidlaw & Company (U.K.) Ltd. as co-manager.
This financing is significant because it provides critical capital to advance Calidi's innovative approach to cancer treatment. The company is pioneering the development of targeted therapies with the potential to deliver genetic medicines to distal sites of disease through its proprietary Redtail platform. This technology features an engineered enveloped oncolytic virus designed for systemic delivery and targeting of metastatic sites, representing a potential breakthrough in treating cancers that have spread throughout the body.
The advanced enveloped technology is engineered to shield the virus from immune clearance, allowing virotherapy to effectively reach tumor sites, induce tumor lysis, and deliver potent gene therapies to metastatic locations. This approach addresses a major challenge in oncology treatment - effectively targeting cancer that has spread beyond the primary tumor site. The company's lead candidate from the Redtail platform, currently in IND-enabling studies, targets non-small cell lung cancer, ovarian cancer, and other tumor types with high unmet medical need.
Additionally, Calidi is developing protected virotherapies in clinical-stage development for intratumoral and localized administration, focusing on a subset of injectable cancer indications. The success of these therapies could transform cancer treatment by providing more effective targeting of metastatic disease, potentially improving survival rates and quality of life for patients with advanced cancers. Investors and patients can follow the latest developments through the company's newsroom available at https://ibn.fm/CLDI.
The $6 million offering represents a crucial step in funding these ambitious clinical programs. For the biotechnology industry, successful development of Calidi's platform could validate a new approach to cancer treatment using engineered viruses for targeted drug delivery. This could spur additional investment and research in similar technologies, potentially accelerating the development of more effective cancer therapies worldwide. The offering's structure, including both common stock and pre-funded warrants, provides flexibility for investors while ensuring the company receives necessary funding to advance its clinical programs.
