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Calidi Biotherapeutics, Inc. has entered into a loan agreement with Dennis R. Conklin, providing the biotech company with a $600,000 principal amount. The agreement, which took effect on Monday, July 1, 2024, stipulates that the loan will mature three years from the payment date, carrying an annual interest rate of 15%.
The San Diego-based company, which specializes in biological products, will receive the funds on Tuesday, July 2, 2024. The promissory note issued to the lender outlines that the interest accrued annually is payable after each calendar year, with the full remaining interest due on the maturity date.
This financial move creates a direct obligation for Calidi Biotherapeutics, which is listed on the NYSE American LLC under the ticker symbols CLDI for its common stock and CLDI WS for its warrants. The company, formerly known as First Light Acquisition Group, Inc., is incorporated in Delaware and operates under the SIC code 2836 for Biological Products, excluding diagnostic substances.
The loan agreement and promissory note are integral documents that detail the terms of this financial arrangement. These documents are available for reference as exhibits attached to the company's SEC filing.
This transaction represents a strategic step for Calidi Biotherapeutics as it continues to navigate its financial journey, ensuring access to capital that may support its ongoing operations and development initiatives. The information reported here is based on the company's SEC Form 8-K filing.
In other recent news, Calidi Biotherapeutics has made notable strides in its financial and research endeavors. The company secured approximately $2.1 million from the exercise of Series B and C warrants, as well as announced the terms for a public offering aiming to raise an estimated $6.1 million.
These funds are intended to support Calidi Biotherapeutics' clinical and pre-clinical programs and operational expenses. Ladenburg Thalmann & Co, Inc. served as the exclusive placement agent for these transactions.
The company also welcomed Dr. George E. Peoples, a renowned cancer immunotherapy expert, to its Board of Directors. Dr. Peoples brings with him extensive experience in the development of cancer vaccines and a history of work in clinical and military healthcare settings.
In terms of research, Calidi Biotherapeutics revealed new data at the American Association for Cancer Research Annual Meeting 2024. The study, conducted in collaboration with City of Hope, focused on the role of stem cells in enhancing the effectiveness of antitumor virotherapies. This research supports the potential of Calidi's CLD-101 and CLD-201 platforms as universal treatments for solid tumors.
These developments are part of Calidi Biotherapeutics' recent advancements, with further updates on the company's clinical progress expected in the second quarter of 2024.
InvestingPro Insights
Calidi Biotherapeutics, Inc.'s recent loan agreement for $600,000 is a crucial lifeline for the company as it attempts to stabilize its financial position and fuel its operations. In light of this development, InvestingPro data and tips offer a deeper understanding of the company's current financial health.
With a market capitalization of just $12.74 million and a concerning P/E ratio of -0.15, the company is navigating challenging financial waters. The adjusted P/E ratio over the last twelve months as of Q1 2024 stands at -0.43, reflecting difficulties in generating profit relative to its share price.
InvestingPro Tips further reveal that Calidi Biotherapeutics operates with a significant debt burden and is quickly burning through cash, which could explain the necessity for the high-interest loan. Moreover, with a stock that trades with high price volatility and has seen a decline of 98.11% in its 1-year price total return, investors should be aware of the potential risks associated with this biotech firm. It's also notable that analysts do not anticipate the company will be profitable this year.
For those considering investing in Calidi Biotherapeutics, or current shareholders seeking to understand the full picture, there are additional InvestingPro Tips available. These tips could provide valuable insights into the company's future prospects and financial stability.
Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking further analysis and tips that could guide investment decisions. As of now, there are 13 more InvestingPro Tips available, which could be pivotal in assessing the company's trajectory following this recent financial maneuver.
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