Candel Therapeutics (CADL) Enters into Underwriting Agreement for Public Offering

Candel Therapeutics, Inc. (NASDAQ: CADL) recently disclosed its latest move in a filing with the Securities and Exchange Commission (SEC). On December 12, 2024, the biopharmaceutical company entered into an underwriting agreement with Citigroup Global Markets Inc., BofA Securities, Inc., and Canaccord Genuity LLC. This agreement involves selling a significant number of shares and warrants as part of a public offering.

As per the agreement, Candel Therapeutics will issue and sell 10,000,001 shares of its common stock at a price of $6.00 per share. Additionally, pre-funded warrants to purchase up to 3,333,333 shares of the company’s common stock will be sold at a price of $5.99 per warrant. The offering totals an estimated $74.7 million in net proceeds for the company, or potentially $86.0 million if the underwriters fully exercise their option to purchase additional shares.

The proceeds from this offering will be directed towards furthering the development of Candel Therapeutics’ product candidates. This includes preparing for the submission of a Biologics License Application for CAN-2409 in prostate cancer, as well as funding general corporate purposes.

The public offering is expected to be finalized around December 16, 2024. The Underwriting Agreement, filed as Exhibit 1.1 to the 8-K report, outlines the terms of the offering, while the form of Pre-Funded Warrant is detailed in Exhibit 4.1. Goodwin Procter LLP has provided an opinion validating the shares and warrants in connection with the offering, as stated in Exhibit 5.1.

Furthermore, Candel Therapeutics announced that it issued press releases on December 12, 2024, regarding the launch and pricing of the offering. The company anticipates utilizing the net proceeds to sustain its operational expenses and capital requirements until the first quarter of 2027, factoring in the completion of various clinical milestones.

While the company has estimated its financial runway till early 2027, it admits that the actual utilization might differ based on evolving circumstances. Candel Therapeutics remains committed to the continued development of its product candidates and programs, acknowledging the potential need for additional capital for future endeavors.

Investors and stakeholders are advised to review all associated risks and uncertainties discussed in regulatory filings, acknowledging the forward-looking nature of such statements. Candel Therapeutics asserts its right to update these forward-looking statements based on changing circumstances and perspectives, with due diligence to regulatory obligations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Candel Therapeutics’s 8K filing here.

Candel Therapeutics Company Profile

Candel Therapeutics, Inc, a clinical stage biopharmaceutical company, engages in the development immunotherapies for the cancer patients. It develops CAN-2409, which is in Phase II clinical trials for the treatment of pancreatic cancer; Phase III clinical trials for the treatment of prostate cancer; and Phase II clinical trials for the treatment of lung cancer, as well as has completed Phase Ib/II clinical trials for the treatment of high-grade glioma.