Bullish indicating open at $55-$60, IPO prices at $37
Eterna Therapeutics Inc. (NASDAQ:ERNA), a pharmaceutical company showing concerning financial metrics according to InvestingPro data, has entered into agreements signaling a significant capital raise and upcoming shareholder meeting. With a current ratio of 0.8 and an EBITDA of -$17.11 million in the last twelve months, the company is quickly burning through cash. On March 31, 2025, the company finalized a securities purchase agreement with certain accredited investors, selling 58.3 million shares of common stock at $0.1046 each and pre-funded warrants to purchase up to 11 million shares at $0.0996 per warrant. The initial sale on April 2, 2025, included roughly 10 million shares and 510,000 pre-funded warrants, representing 19.99% of Eterna’s outstanding shares as of the reporting date.
The second transaction, involving the remaining shares and 10.5 million pre-funded warrants, is contingent on specific conditions, including shareholder approval as per Nasdaq rules. To address this, Eterna plans to convene a shareholder meeting no later than June 30, 2025, or July 30 if the SEC reviews the preliminary proxy statement. The company has committed to registering the shares for resale within 15 days of the initial sale and to file another registration for the subsequent sale within 10 days of its completion. The urgency of this capital raise is underscored by the company’s financial health score of 1.67, rated as ’WEAK’ by InvestingPro analysts.
Key investors include Charles Cherington and Nicholas Singer, both with previous director roles at Eterna and substantial existing shareholdings. Their participation in the private placement was on equal terms with other investors. These transactions are exempt from registration under the Securities Act of 1933, as amended, due to the private nature of the offering.
In addition to the capital raise, Eterna’s board has rescheduled the 2025 annual meeting of stockholders from May 1 to June 2, 2025. Stockholders intending to nominate directors or propose business must notify the company by April 13, 2025, adhering to the company’s bylaws and relevant regulations.
This report is based on a press release statement and offers a snapshot of Eterna Therapeutics’ latest strategic financial moves and upcoming corporate governance activities. The company’s stock has experienced significant volatility, with a 91.62% decline over the past year and a beta of 7.33. Unlock 15+ additional InvestingPro Tips and comprehensive financial analysis by subscribing to InvestingPro.
In other recent news, Eterna Therapeutics, now known as Ernexa Therapeutics, has officially rebranded, marking another chapter in its evolving corporate identity. This change was formalized through an amendment to its Restated Certificate of Incorporation and is reflected in its latest 8-K filing with the U.S. Securities and Exchange Commission. Additionally, the company announced a significant preclinical milestone for its lead product, ERNA-101, aimed at treating advanced ovarian cancer. Collaborative studies with the MD Anderson Cancer Center demonstrated promising results, including increased T cell infiltration and reduced tumor size in a mouse model.
Eterna Therapeutics has also expanded its scientific advisory board with the addition of oncology experts Jerome Zeldis, M.D., Ph.D., and Blythe Sather, Ph.D., who are expected to advance the company’s research pipeline. In governance news, the company set its 2025 annual meeting for May 1, with shareholders required to submit proposals by February 23. Meanwhile, Eterna Therapeutics faces a potential delisting from Nasdaq due to its Market Value of Listed Securities falling below the required minimum, with a compliance deadline set for July 7, 2025.
Lastly, there have been changes in the company’s board of directors, with Dorothy Clarke resigning and Dr. Elena Ratner being appointed as an independent director. Dr. Ratner’s appointment is not tied to any prior arrangements and she will serve until the upcoming annual meeting. These developments highlight the company’s ongoing strategic and operational adjustments.
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