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Investing.com -- Cabaletta Bio Inc (NASDAQ:CABA) stock plunged 26% after the clinical-stage biotechnology company announced the pricing of an underwritten public offering expected to raise approximately $100 million in gross proceeds.
The offering consists of 39.2 million shares of common stock and accompanying warrants to purchase an equal number of shares, along with pre-funded warrants to purchase up to 10.8 million shares with accompanying warrants. The combined offering price is $2.00 per share of common stock with its accompanying warrant, significantly below recent market prices.
Each accompanying warrant has an exercise price of $2.50 per share, is immediately exercisable, and will expire fifteen months from issuance. Cabaletta also granted underwriters a 30-day option to purchase up to an additional 15 million shares and/or warrants.
Jefferies, TD Cowen and Cantor are serving as joint book-running managers for the offering, which is expected to close around June 12, 2025.
Cabaletta Bio focuses on developing targeted cell therapies for patients with autoimmune diseases. The substantial dilution from the new share issuance appears to be driving today’s sharp stock decline as existing shareholders face ownership reduction following the capital raise.
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