Cibus sets price for $27.5 million stock offering

Published 05/06/2025, 13:44
Cibus sets price for $27.5 million stock offering

SAN DIEGO - Cibus Inc. (NASDAQ:CBUS), a prominent agricultural biotechnology company, has announced the pricing of its public offering of approximately 15.7 million shares of Class A Common Stock at $1.75 per share. The offering includes purchases by institutional and strategic investors, as well as the company’s Chairman of the Board, who will acquire over 5.7 million shares. The gross proceeds from this offering are expected to be around $27.5 million, excluding agent fees and other estimated offering expenses. According to InvestingPro data, the company’s current market capitalization stands at $81.15 million, with analysis indicating the stock may be undervalued despite falling 78.7% over the past year.

The sale is scheduled to close on June 6, 2025, subject to customary closing conditions. Cibus plans to allocate the net proceeds to advance the development of its weed management productivity traits in rice and to bolster working capital and general corporate purposes as it seeks more sustainable financing options. InvestingPro analysis reveals the company is quickly burning through cash, with a debt-to-equity ratio of 3.46 and negative free cash flow, highlighting the importance of this capital raise.

A.G.P./Alliance Global Partners is serving as the sole placement agent for the offering. The offering is being conducted under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on June 30, 2023, and declared effective on October 27, 2023. A prospectus supplement detailing the offering terms will be filed with the SEC and made available on their website.

Cibus is known for using proprietary gene editing technologies to develop plant traits, which are not only designed to enhance crop productivity but also to tackle challenges such as diseases and pests that significantly impact the global economy. The company emphasizes that it is a technology entity, not a seed company, and it licenses its developed traits to seed companies in exchange for royalties on seed sales. Financial data from InvestingPro shows impressive revenue growth of 104.78% in the last twelve months, though the company remains unprofitable with analysts not expecting profitability this year. Discover 8 more key insights about CBUS and access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The information in this article is based on a press release statement from Cibus Inc. It’s important to note that this press release does not constitute an offer to sell or a solicitation of an offer to buy the securities being offered. There will be no sale of these securities in any state or jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

In other recent news, Cibus Inc reported its financial results for the first quarter of 2025, highlighting a significant increase in revenue to $1 million, up from $511,000 in the previous year. However, the company faced a widening net loss of $49.4 million, attributed largely to increased selling, general, and administrative expenses, including a $3 million litigation accrual. The company is actively pursuing commercialization opportunities for its gene-editing technology, with plans to launch certain products by 2027. Cibus is working on expanding its partnerships with rice seed companies and advancing field trials for canola and soybean platforms. Analysts have not specifically upgraded or downgraded the stock, but Jefferies and Canaccord have shown interest in the company’s financials and regulatory progress. Regulatory developments have been favorable, including the USDA APHIS designation of Cibus’s canola disease resistance traits as not regulated, which supports the company’s commercialization pathway. The company continues to focus on reducing its cash burn rate and optimizing operations as it moves forward with its strategic priorities.

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