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FLORHAM PARK, N.J. - Cellectar Biosciences, Inc. (NASDAQ:CLRB), currently valued at $9.1 million in market capitalization, has priced an underwritten public offering expected to generate approximately $6 million in gross proceeds before deducting underwriting commissions and expenses. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, though it’s currently burning through cash rapidly.
The offering consists of 865,000 Class A Units priced at $5.00 each, with each unit comprising one common stock share and one common warrant, alongside 335,000 Class B Units at $4.99999 each, consisting of one pre-funded warrant and one common warrant. The stock has experienced significant volatility, with InvestingPro analysis showing the shares trading near their 52-week low, having declined over 90% in the past year.
The common warrants will have a $5.25 per share exercise price and a five-year term. Ladenburg Thalmann & Co. Inc. is serving as the sole bookrunning manager for the transaction.
The offering is expected to close on or about Tuesday, subject to customary closing conditions. The company has also granted the underwriter a 45-day option to purchase up to 180,000 additional shares and/or common warrants to cover potential over-allotments.
According to the press release statement, Cellectar intends to use the net proceeds for general corporate purposes, working capital, operating expenses, and to initiate a Phase 1b clinical study of its compound CLR 121125 in triple-negative breast cancer. The company maintains a current ratio of 2.47, indicating sufficient liquidity to meet short-term obligations. Get deeper insights into Cellectar’s financial health and 12 additional ProTips with a subscription to InvestingPro.
Cellectar Biosciences is a late-stage clinical biopharmaceutical company focused on developing cancer treatments using its Phospholipid Drug Conjugate delivery platform. While analysts have set price targets ranging from $90 to $150, the company’s overall financial health score remains weak according to InvestingPro metrics.
The securities are being offered pursuant to a registration statement that was declared effective by the SEC on Tuesday.
In other recent news, Cellectar Biosciences has provided updates on its clinical programs, highlighting preclinical results for its phospholipid ether drug conjugate compounds. The company reported that CLR 125 demonstrated promising activity in solid tumor models, including triple-negative breast cancer, while CLR 225 showed efficacy in pancreatic, colorectal, and breast cancer models. Additionally, the company announced a multi-year agreement with Nusano for the supply of iodine-125 and actinium-225 radioisotopes, essential for its radiotherapeutic pipeline. This agreement supports the advancement of Cellectar’s CLR-125 and CLR-225 programs.
Furthermore, Cellectar enacted a one-for-thirty reverse stock split, consolidating its shares while maintaining the same trading symbol on Nasdaq. The reverse split reduces the number of outstanding shares but keeps the number of authorized shares unchanged. In clinical trial news, the CLOVER-2 Phase 1 trial for pediatric brain tumors showed improved survival rates with iopofosine I 131, with patients experiencing longer progression-free and overall survival compared to typical outcomes. The company also noted that iopofosine I 131 was well tolerated, with manageable hematologic toxicities.
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