- Cue Biopharma (CUE, Financial) announces a public offering projected to raise approximately $20 million in gross proceeds.
- The offering is set at $0.79 per common stock unit, aligning with the current market price.
- Oppenheimer & Co. Inc. will act as the sole book-running manager for the transaction.
Cue Biopharma, Inc. (CUE), a clinical-stage biopharmaceutical company focused on developing therapies for cancer and autoimmune diseases, has announced the pricing of its underwritten public offering. The company expects to generate approximately $20 million in gross proceeds through this offering.
The offering consists of 13,530,780 shares of common stock with accompanying warrants for an additional 3,382,695 shares. Additionally, there are pre-funded warrants available for the purchase of 11,469,216 shares, along with additional warrants for 2,867,304 shares. Common stock and accompanying warrants are priced at $0.79 per unit, while pre-funded warrants are offered at $0.789 per unit.
Each common stock warrant has a five-year term with an exercise price of $0.79. The pre-funded warrants are exercisable immediately at a nominal price of $0.001 and remain exercisable until fully utilized. This public offering is expected to close on or around April 16, 2025, contingent upon customary closing conditions.
The capital raised through this offering will help Cue Biopharma extend its operational runway, crucial for advancing its clinical programs. However, the stock issuance will result in significant dilution for existing shareholders who do not participate in the offering.
Oppenheimer & Co. Inc. serves as the sole book-running manager for this offering, ensuring the efficient placement of securities. The transaction highlights the company's efforts to balance immediate funding needs with shareholder interests, particularly in a challenging market environment for small-cap biotech firms.
