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Clene Inc. (NASDAQ:CLNN), a pharmaceutical company with a market capitalization of $30.4 million, announced on Monday it has resolved an outstanding $125,000 debt through the issuance of shares. The Salt Lake City-based firm, specializing in pharmaceutical preparations, disclosed the financial maneuvering in a recent SEC filing. According to InvestingPro analysis, the company appears undervalued at current levels, though investors should note it’s currently burning through cash rapidly.
According to the report filed on March 27, 2025, Clene Inc. entered into an agreement to issue 35,311 shares of common stock at $3.54 per share, with the stock trading near its 52-week low of $3.37. This move was made to fully satisfy the debt owed to a counterparty. The shares, with a par value of $0.0001 each, were offered under the company’s existing registration statement on Form S-3, which became effective on April 26, 2022. InvestingPro subscribers can access 8 additional key insights about CLNN’s financial health and market position.
The issuance of shares is expected to be accompanied by a related prospectus supplement, which the company anticipates will be filed with the SEC shortly. This transaction allows Clene Inc. to manage its financial obligations without incurring additional cash expenditures.
As part of the filing, Clene Inc. also included the legal opinion of Holland & Knight LLP concerning the validity of the shares being issued. This document, filed as Exhibit 5.1, provides the necessary legal framework supporting the issuance.
The decision to convert debt into equity is a strategic move that can often serve to strengthen a company’s balance sheet by reducing its debt load while potentially diluting existing shareholders. With an EBITDA of -$31.45 million in the last twelve months and a current ratio of 1.57, the company’s financial position remains challenging. The filing did not disclose the identity of the counterparty or the reason for the original indebtedness.
This news comes as Clene Inc. continues to operate in the competitive pharmaceutical industry, where managing financial health is crucial for ongoing operations and research development. The information for this article is based on a press release statement filed with the SEC.
In other recent news, Clene Inc. reported its fourth-quarter and full-year financial results for 2024, revealing earnings per share of ($1.61) for the fourth quarter and ($5.67) for the year, which fell short of analysts’ expectations. Despite this, H.C. Wainwright maintained a Buy rating and a $31 price target on Clene stock, citing confidence in the company’s developments. Clene has been actively working on its drug candidate CNM-Au8 for the treatment of amyotrophic lateral sclerosis (ALS). Recent long-term survival data from the HEALEY ALS Platform Trial indicated that CNM-Au8 could extend patient survival, supporting the potential for accelerated approval discussions with the FDA. Clene is also collaborating with APST Research to analyze neurofilament light (NfL) biomarker data, which could further substantiate CNM-Au8’s efficacy. The company plans to submit a New Drug Application (NDA) in the second half of 2025. Additionally, Clene is preparing to launch the confirmatory Phase 3 RESTORE-ALS study in mid-2025 to further investigate CNM-Au8’s potential benefits. These developments reflect Clene’s ongoing efforts in advancing treatments for ALS and other neurodegenerative diseases.
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