Calidi Biotherapeutics secures $4.6 million through warrant exercise

SAN DIEGO - Calidi Biotherapeutics, Inc. (NYSE American:CLDI), currently trading at $1.09 per share with a market capitalization of $11.25 million, announced Wednesday it has entered into a definitive agreement for the immediate exercise of certain outstanding warrants to purchase up to 6,595,000 shares of the company’s common stock at a reduced exercise price of $0.70. According to InvestingPro analysis, the stock has shown significant volatility, gaining over 43% in the past week despite being down 75% over the last six months.

The clinical-stage biotechnology company expects to generate approximately $4.6 million in gross proceeds from the transaction, before deducting placement agent fees and offering expenses. Ladenburg Thalmann & Co, Inc. is serving as the exclusive placement agent for the offering.

In exchange for the immediate cash exercise of the existing warrants, Calidi will issue new unregistered warrants to purchase up to 6,595,000 shares of common stock. These new warrants will have an exercise price of $0.70 per share, become exercisable six months after issuance, and expire five and a half years from the issuance date.

The transaction is expected to close on or about July 10, subject to customary closing conditions.

Calidi plans to use the net proceeds to advance its clinical and pre-clinical programs and for continuing operating expenses and working capital.

The new warrants are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, and have not been registered under the Act or applicable state securities laws. The company has agreed to file a registration statement with the SEC covering the resale of shares issuable upon exercise of the new warrants.

Calidi Biotherapeutics is developing targeted therapies designed to deliver genetic medicines to disease sites. The company’s proprietary Redtail platform focuses on designing viral vectors that can evade immune detection for systemic delivery to tumor sites. While the company shows promise in its clinical developments, InvestingPro analysis reveals additional insights about the company’s financial health and market position, with 12 more exclusive ProTips available to subscribers.

This information is based on a press release statement from the company.

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