Pre-market trading saw Codiak BioSciences Inc. (CDAK) shares lower by -20.36% to $1.33 after announcing the pricing of a public offering. It fluctuated between $1.67 and $1.7908 throughout the day and closed the last session at $1.67, down -6.70% or -$0.12.
What CDAK has announced?
A public offering of 13,333,333 shares of common stock and accompanying warrants for the purchase of 13,333,333 shares of common stock was announced by Codiak BioSciences (CDAK).
- It is priced at $1.50 per share, with warrants accompanying each share.
- Taking underwriting discounts and commissions into account, gross proceeds will amount to approximately $20 million.
- CDAK is offering all of the securities.
- A warrant with an exercise price of $1.875 per share can be exercised immediately, and it expires five years after its issuance.
- As part of the agreement, Codiak has granted the underwriters the option to purchase up to an additional 1,999,999 shares, less underwriting discounts, and commissions, at the public offering price.
- In accordance with customary closing conditions, the offering is expected to close on September 15, 2022.
- As the sole book-running manager, Jefferies is managing this offering.
Updating the program
Codiak recently came reprioritizing its clinical and research initiatives, accelerating discussions relating to strategic partnerships with corporations and programs, and restructuring operations to align with a streamlined set of objectives.
Codiak has entered clinical trials for its third candidate, exoASOTM-STAT6, a systemically administered exosome-based drug candidate. Antisense oligonucleotides deliver antisense oligonucleotides to tumor-associated macrophages (TAMs) specifically to disrupt STAT6 signaling and induce antitumor immunity. In preclinical studies of aggressive hepatocellular carcinoma models, exoASO-STAT6 showed antitumor activity as a single agent.
A new partnership between Codiak and CEPI (Coalition for Epidemic Preparedness Innovations) has been announced last month to advance the company’s exoVACCTM pan betacoronavirus program. Codiak anticipates that CEPI will provide seed funding of up to $2.5 million during the first quarter of next year to fund the completion of preclinical development and identification of a clinical candidate.
Overview of the CDAK’s financial situation
Codiak had approximately $41.8 million in cash, cash equivalents, and marketable securities as of June 30, 2022. In exploring prospective funding opportunities, Codiak is proactive in extending its cash runway and potential to resource additional programs as part of its corporate and partnering discussions.