CERo Therapeutics secures $8 million in funding for cancer therapy

SOUTH SAN FRANCISCO - CERo Therapeutics Holdings, Inc. (NASDAQ:CERO), a biotechnology firm specializing in immunotherapy, has announced a new convertible preferred stock transaction expected to raise up to $8 million in gross proceeds. The company, currently valued at $3.44 million market cap, plans to use these funds to further its T cell therapeutic programs, particularly for liquid and solid tumor indications. According to InvestingPro data, while CERo maintains more cash than debt on its balance sheet, its current ratio of 0.5 indicates potential liquidity challenges.

The initial closing of the securities purchase agreement will bring in $5 million, with the potential for an additional $3 million upon further closings, contingent on investor decisions. This capital infusion is intended to support the activation of a new site at MD Anderson Cancer Center (MDACC) and expedite the launch of other sites for clinical trials.

CERo’s CEO, Chris Ehrlich, expressed gratitude for the investor support following the Food and Drug Administration’s (FDA) recent Investigational New Drug (IND) allowances and the company’s progress towards treating their first Acute Myeloid Leukemia (AML) patient at MDACC. The funding is also aimed at addressing the company’s compliance with Nasdaq’s Shareholders Equity requirements and to extend its operational runway. InvestingPro analysis reveals the company reported an EBITDA of -$15.76 million in the last twelve months, highlighting the importance of this capital raise.

CERo is pioneering a novel approach to T cell engineering, aiming to integrate aspects of both innate and adaptive immunity into a single therapeutic construct. This method involves creating Chimeric Engulfment Receptor T cells (CER-T), which are designed to target and eliminate cancer cells through phagocytic mechanisms. The company believes that CER-T cells could potentially be more broadly applicable than the current chimeric antigen receptor (CAR-T) cell therapies, covering both hematological malignancies and solid tumors.

The company is preparing to initiate clinical trials for its lead product candidate, CER-1236, targeting hematological malignancies in 2025.

The press release clarified that this announcement does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction where such an offer or sale would be unlawful without registration or qualification under the securities laws of such jurisdiction.

This news is based on a press release statement from CERo Therapeutics Holdings, Inc. Forward-looking statements within the press release reflect the company’s current expectations and are subject to risks outlined in its SEC filings, including its Annual Report on Form 10-K filed on April 15, 2025. These statements are not guarantees of future performance, and actual results could differ materially. Investors seeking deeper insights into CERo’s financial health and growth prospects can access 12 additional exclusive ProTips and comprehensive financial metrics through InvestingPro.

In other recent news, CERo Therapeutics Holdings, Inc. has made significant strides in its intellectual property and clinical trial endeavors. The company announced the allowance of two key patent applications by the U.S. Patent and Trademark Office, expanding its patent portfolio related to its lead compound, CER-1236. This compound is designed for cancer treatment and combines various T cell technologies. These patents extend CERo’s intellectual property protection in the U.S. until 2039, bolstering its market position.

Additionally, CERo Therapeutics received approval from the U.S. Food and Drug Administration to commence a Phase 1 clinical trial for CER-1236, targeting advanced solid tumors such as non-small cell lung cancer and ovarian cancer. The company also completed the final obligation to the FDA regarding its Investigational New Drug application, facilitating the start of patient dosing. Boral Capital recently initiated coverage on CERo Therapeutics with a Buy rating, citing the company’s innovative T cell engineering platform and potential advancements in solid tumor treatment.

These developments reflect CERo’s ongoing efforts to advance its proprietary T cell therapies and strengthen its position in the field of cancer immunotherapy.

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