Oncology-focused, clinical stage biotechnology company, Cellectar Biosciences, Inc. (NASDAQ:CLRB), announce a pricing of $8 million public offering.
MADISON, Wis., Nov. 23, 2016 (GLOBE NEWSWIRE) — Cellectar Biosciences, Inc. (CLRB) (“Cellectar” or the “company”), an oncology-focused, clinical stage biotechnology company, today announces the pricing of an underwritten public offering of shares of its common stock, or in lieu thereof, shares of its preferred stock convertible into 66,667 shares of common stock per share of preferred stock, at an effective price of $1.50 per share of common stock, and in both cases, associated warrants, for gross proceeds of approximately $8.0 million, prior to deducting underwriting discounts, commissions and offering expenses payable by the company.
The conversion price of the preferred stock and the exercise price of the warrants are fixed, and do not contain any variable pricing features or any price-based anti-dilutive features. The preferred stock is non-voting, and has no dividend rights (except to the extent dividends are also paid on common stock), liquidation preference or other preferences over common stock. The preferred stock and warrants include a beneficial ownership blocker.
For each share of common stock purchased directly or issuable upon conversion of shares of preferred stock, an investor will receive a five-year warrant exercisable for one share of the company’s common stock, at an exercise price of $1.50 per share. The shares of common stock and shares of preferred stock will be immediately separable from the warrants. The offering is expected to close on or about November 29, 2016, subject to the satisfaction or waiver of customary closing conditions.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT:LTS), is acting as sole bookrunner for the offering, and Aegis Capital Corp. is acting as co-manager.
The net proceeds of the offering are estimated to be approximately $7.2 million after deducting underwriting discounts, commissions and estimated offering expenses, prior to any exercise of the underwriter’s overallotment option.
The company intends to use the net proceeds from the offering for general corporate and working capital purposes, including continued development of CLR 131 for the potential treatment and management of multiple myeloma and other hematologic malignancies, as well as the continued development of targeted therapeutic cancer agents using the company’s proprietary phospholipid drug conjugate (PDC) delivery platform.
A registration statement relating to the offering was declared effective by the Securities and Exchange Commission (SEC) on November 22, 2016. The offering will be made solely by means of a final prospectus, which will be filed with the SEC, copies of which may be obtained at the SEC’s website at www.sec.gov, or by contacting Ladenburg Thalmann & Co. Inc., 570 Lexington Avenue, 11th Floor, New York, New York 10022 or by email at firstname.lastname@example.org.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
About Cellectar Biosciences, Inc.
Cellectar Biosciences is developing phospholipid drug conjugates (PDCs) designed to provide cancer targeted delivery of diverse oncologic payloads to a broad range of cancers and cancer stem cells. Cellectar’s PDC platform is based on the company’s proprietary phospholipid ether analogs. These novel small-molecules have demonstrated highly selective uptake and retention in a broad range of cancers. Cellectar’s PDC pipeline includes product candidates for cancer therapy and cancer diagnostic imaging. The company’s lead therapeutic PDC, CLR 131, utilizes iodine-131, a cytotoxic radioisotope, as its payload. CLR 131 is currently being evaluated under an orphan drug designated Phase I clinical study in patients with relapsed or refractory multiple myeloma. In addition, the company plans to initiate a Phase II clinical study to assess efficacy in a range of B-cell malignancies in the first quarter of 2017. The company is also developing PDCs for targeted delivery of chemotherapeutics such as paclitaxel (CLR 1602-PTX), a preclinical stage product candidate, and plans to expand its PDC chemotherapeutic pipeline through both in-house and collaborative R&D efforts. For more information please visit www.cellectar.com.
Cellectar Biosciences, Inc. (NASDAQ:CLRB) shares are trading +0.00% on the news and in the range of $1.43 – 1.59 during the current trading session. When taking a look at which direction the stock might be headed, investors often look to brokerage analysts who cover the stock. Sell-side research firms on Wall Street currently have a consensus one-year price target of $7.44 on the stock. This is according to brokerage analysts polled by Thomson Reuters First Call.
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Sell-side analysts are projecting earnings per share of $-0.20 for the next fiscal quarter. For the current year, analysts are predicting earnings of $-0.80 per share according to First Call.
In looking at where the stock is trading on a technical level, the stock is trading -28.34% away from its 50-day moving average of $2.08. Based on the most recent available data, the equity is -89.12% off of its 52-week high of $13.70 and +49.00% away from its 52-week low which is $1.00.
Today, the stock opened at $1.49 and the last bid at the time of writing stood at $1.49. During the session thus far, the equity dipped down to $1.43 and touched $1.59 as the high point. Cellectar Biosciences, Inc. (NASDAQ:CLRB) has a market cap of $8.00M and has seen an average daily volume of 2,54,746 over the past three months.
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