SAN DIEGO - Cibus Inc. (NASDAQ:CBUS), a pioneer in agricultural biotechnology, has announced the pricing of its public offering at $4.00 per share. The offering includes 3 million shares of Class A Common Stock with a par value of $0.0001. The company also provides underwriters a 45-day option to purchase up to an additional 450,000 shares to cover any over-allotments.
The gross proceeds from the offering are expected to reach approximately $12 million before deductions for underwriting discounts, commissions, and other estimated offering expenses. The offering is anticipated to close on September 19, 2024, subject to customary closing conditions.
Cibus intends to use the net proceeds to advance the development of new and existing seed traits, support Trait Machine operations, and for general corporate purposes, including working capital. Roth Capital Partners and A.G.P./Alliance Global Partners (NYSE:GLP) are serving as joint book-running managers for the offering.
This offering follows an effective shelf registration statement on Form S-3, declared effective by the U.S. Securities and Exchange Commission (SEC) on October 27, 2023. A prospectus supplement outlining the terms of the offering will be filed with the SEC.
Cibus is not a seed company but leverages its proprietary gene editing technology to develop plant traits, which it then licenses to seed companies for royalties. The company's strategic focus is on enhancing productivity traits for major row crops like canola, rice, soybean, corn, and wheat, addressing challenges such as weeds, disease, and insects that annually cost the global economy an estimated $300 billion.
The information in this article is based on a press release statement from Cibus.
In other recent news, Cibus Inc., a biotechnology company known for its gene editing technology, has announced plans for a public offering of its Class A common stock. The specifics of the offering are not yet determined and will be subject to market conditions. Cibus has also offered underwriters a 45-day option to purchase additional shares. Both existing institutional investors and CEO Rory Riggs have shown non-binding interest in the stock offering.
The proceeds from this offering are slated for the development of new and existing seed traits, operations of the company's Trait Machine, and other general corporate purposes. Roth Capital Partners and A.G.P./Alliance Global Partners are serving as joint bookrunning managers for the offering.
These recent developments are part of a shelf registration statement filed with the Securities and Exchange Commission in June 2023 and declared effective in October 2023. Cibus' pipeline includes traits for Pod Shatter Reduction, Sclerotinia resistance, and weed management, some of which are already in commercial development stages.
InvestingPro Insights
As Cibus Inc. (NASDAQ:CBUS) aims to fuel its advancements in agricultural biotechnology through a new public offering, insights from InvestingPro provide a deeper understanding of the company's financial health and market position. With a market capitalization of $231.76 million, Cibus is navigating a competitive landscape with a strategic focus on licensing its gene editing technology.
An important aspect of Cibus's financial structure is that the company holds more cash than debt on its balance sheet, providing a cushion for operational and development activities. This is a positive sign for investors looking for companies with a prudent financial approach. Additionally, analysts are forecasting sales growth for the current year, which could be a reflection of the company's potential to capitalize on its technological offerings and licensing model.
However, Cibus's stock price has been quite volatile, indicating that investors may experience significant swings in market value. This level of volatility can be a double-edged sword, offering both higher risk and the potential for substantial gains. Moreover, the company has not been profitable over the last twelve months, which is a common situation for many growth-focused biotech firms investing heavily in research and development.
Investors interested in Cibus's performance and future prospects can find additional insights and tips on InvestingPro, which currently lists 7 more InvestingPro Tips for the company, providing a comprehensive analysis of its financial metrics and stock behavior. The InvestingPro Fair Value estimate for Cibus is currently at $2.89 per share, suggesting a potential undervaluation based on the model's criteria.
For those keeping a close eye on Cibus's journey in the biotech industry, the next earnings date is set for November 6, 2024, which will be a pivotal moment for the company to share its progress and financial results.
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