Boundless Bio plans $14.5M stock sale via Jefferies

SAN DIEGO, CA – Boundless Bio , Inc., a pharmaceutical company based in San Diego, California, has entered into an agreement that could see it sell up to $14.5 million of its common stock. The announcement comes as the company’s shares trade near their 52-week low of $1.42, having declined nearly 89% over the past year according to InvestingPro data. The deal, announced on Monday, involves an Open Market Sale AgreementSM with Jefferies LLC, which will act as the sales agent or principal in potential "at the market offerings." With a current market capitalization of approximately $34 million and an InvestingPro Financial Health Score rated as "WEAK," this move could provide crucial funding for the company’s operations.

Under the terms of the agreement, Boundless Bio may sell shares at market prices or as negotiated with Jefferies, which is entitled to up to a 3% commission on the gross proceeds from any sales. However, there is no obligation on either side for the sale or purchase of shares, and there is no guarantee that any sales will take place. If sales do occur, the timing, volume, and price of the shares sold are currently undetermined.

The shares in question will be issued pursuant to a shelf registration statement on Form S-3, including a Sales Agreement prospectus, filed with the Securities and Exchange Commission (SEC) on the same day the agreement was made. The effectiveness of the registration statement is pending SEC approval.

Boundless Bio has also agreed to indemnify Jefferies against certain liabilities that may arise under the Securities Act of 1933 and the Securities Exchange Act of 1934. Either party can terminate the agreement at any time with prior written notice.

This move comes as Boundless Bio, identified by its ticker symbol (NASDAQ:BOLD), continues its efforts in the pharmaceutical preparations sector. While the company maintains a strong current ratio of 18.98 and holds more cash than debt on its balance sheet, InvestingPro analysis indicates it’s quickly burning through cash. The company, which operates under the jurisdiction of Delaware with a fiscal year ending December 31, has not specified how it intends to use the potential proceeds from the stock sale. InvestingPro subscribers have access to 12 additional key insights about Boundless Bio’s financial health and market position.

The information reported here is based on a press release statement and the company’s filing with the SEC.

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