Cellectar Biosciences announces $2.5 million stock sale

FLORHAM PARK, N.J. – Cellectar Biosciences, Inc. (NASDAQ: CLRB), a biopharmaceutical company engaged in the development of cancer treatments, has entered into definitive agreements to raise $2.5 million through the sale of its common stock, with the transaction expected to close on or about June 6, 2025. The company’s stock is being sold at-market based on Nasdaq pricing guidelines. According to InvestingPro data, the stock has shown significant volatility, with a 75% surge in the past week despite being down 85% over the past year. The company’s current market capitalization stands at $21.3 million.

The funding comes from the immediate exercise of certain outstanding warrants to purchase approximately 8.3 million shares of common stock, initially issued on dates ranging from June 5, 2020, to July 21, 2024. These warrants are being exercised at a reduced price of $0.3041 per share. Cellectar did not issue any new replacement warrants in this process. InvestingPro analysis reveals that while the company maintains more cash than debt on its balance sheet, it’s currently burning through cash rapidly, making this capital raise crucial for operations.

The shares of common stock issuable upon the exercise of the existing warrants are registered for resale under effective registration statements. The gross proceeds from the exercise of these warrants are anticipated to be around $2.5 million, before accounting for placement agent fees and offering expenses.

Ladenburg Thalmann & Co. Inc. is serving as the exclusive placement agent for the offering. Cellectar intends to allocate the net proceeds from this capital raise towards general corporate purposes, which include working capital and operating expenses.

Cellectar Biosciences is primarily focused on the discovery and development of its proprietary Phospholipid Drug Conjugate™ (PDC) platform to create targeted cancer cell treatments. The company’s pipeline features several drug candidates, including iopofosine I 131, which has received Breakthrough Therapy Designation from the FDA, and other programs targeting solid tumors. Financial metrics from InvestingPro indicate the company maintains a healthy current ratio of 2.47, though it remains unprofitable with significant negative EBITDA. For deeper insights into Cellectar’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering over 1,400 US stocks.

The company has also been involved in Phase 2b trials for its iopofosine I 131 in treating relapsed or refractory multiple myeloma and central nervous system lymphoma. Additionally, Cellectar is conducting the CLOVER-2 Phase 1b study for pediatric patients with high-grade gliomas, which could potentially lead to a Pediatric Review Voucher from the FDA upon approval.

Cellectar has cautioned that this announcement contains forward-looking statements subject to various risks and uncertainties, and actual results may differ materially. The company has outlined these risks in its filings with the Securities and Exchange Commission.

This news article is based on a press release statement from Cellectar Biosciences, Inc. and does not constitute an offer to sell or a solicitation of an offer to buy any securities.

In other recent news, Cellectar Biosciences has received Breakthrough Therapy Designation from the U.S. Food and Drug Administration (FDA) for its cancer treatment drug, iopofosine I 131. This designation aims to expedite the development of treatments for serious conditions, and it follows promising results from the Phase 2 CLOVER WaM study, which reported an overall response rate of 83.6% and a major response rate of 58.2%. The FDA’s decision is part of a series of recognitions for iopofosine I 131, which has also been granted Fast Track and Orphan Drug Designations by both the FDA and the European Medicines Agency (EMA). Meanwhile, Cellectar has submitted a data package to the EMA for consideration of a conditional marketing authorization, with a decision expected by late July 2025. Additionally, the company presented its findings at the 66th Annual American Society of Hematology Conference, marking a significant milestone in its clinical journey. These developments have been well-received by investors, potentially positioning Cellectar for future collaborations or partnerships.

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