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PHILADELPHIA - Cabaletta Bio, Inc. (NASDAQ:CABA), currently valued at $91 million, announced today the pricing of an underwritten public offering expected to raise approximately $100 million in gross proceeds. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 3.96x, though it’s been rapidly depleting its cash reserves.
The offering consists of 39.2 million shares of common stock and 10.8 million pre-funded warrants, each paired with accompanying warrants to purchase additional shares. The combined price is $2.00 per share of common stock with accompanying warrant and $1.99999 for each pre-funded warrant with accompanying warrant. This pricing comes as InvestingPro analysis suggests the stock is currently undervalued, with analyst price targets ranging from $3 to $28 per share.
The accompanying warrants have an exercise price of $2.50 per share, are immediately exercisable, and will expire fifteen months from issuance. Cabaletta has also granted underwriters a 30-day option to purchase up to an additional 15 million shares and/or warrants.
Jefferies, TD Cowen and Cantor are serving as joint book-running managers for the offering, which is expected to close on or about June 12, 2025, subject to customary closing conditions.
The clinical-stage biotechnology company is focused on developing targeted cell therapies for autoimmune diseases. Its lead investigational therapy, rese-cel, is currently being evaluated in clinical trials across multiple therapeutic areas including rheumatology, neurology and dermatology.
The securities are being offered pursuant to a shelf registration statement previously filed with and declared effective by the U.S. Securities and Exchange Commission, according to the company’s press release statement. For deeper insights into CABA’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Cabaletta Bio has announced the commencement of an underwritten public offering of its common stock and warrants, with Jefferies, TD Cowen, and Cantor acting as joint book-running managers. The company is offering pre-funded warrants to certain investors, and the offering is subject to customary closing conditions. Additionally, Cabaletta Bio reported positive clinical data for its investigational cell therapy, rese-cel, which demonstrated favorable responses in patients with myositis, lupus, and systemic sclerosis, allowing them to discontinue immunomodulatory drugs and steroids. The company is advancing its RESET clinical trial program and plans to initiate two registrational myositis cohorts this year.
In other developments, Cabaletta Bio has repriced stock options for its employees, including executive officers, to motivate and retain key personnel. The repricing is part of the company’s strategy to navigate a critical phase in its operations. Analyst firm UBS has adjusted its price target for Cabaletta Bio to $7, maintaining a Buy rating, following the company’s earnings report and a new Grade 3 ICANS case in the RESET-SSc trial. Meanwhile, Stifel has also lowered its price target to $13, citing increased development risks, yet continues to endorse the stock with a Buy rating. Both firms highlight the importance of safety in CAR-T therapies, with Cabaletta Bio implementing additional precautions in its trials.
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