SALT LAKE CITY - Clene Inc. (NASDAQ:CLNN), a clinical-stage biopharmaceutical company, announced today its entry into a securities purchase agreement for a registered direct offering and concurrent private placements with an aggregate gross proceeds expectation of approximately $7.3 million.
The agreement involves the sale of 742,626 shares of common stock or equivalent pre-funded warrants to a healthcare-focused institutional investor, accompanied by one-for-one warrants exercisable at $4.82 per share. The combined purchase price is set at $4.713 per share or warrant. These warrants are immediately exercisable and will expire five years from the date of issuance.
Concurrently, Clene has engaged in separate private placements with existing stockholders and company insiders, including directors and officers, who have purchased a total of 804,288 shares of common stock or pre-funded warrants, also with accompanying warrants on similar terms.
The company anticipates using the net proceeds to support general corporate purposes, which include the clinical development of its lead drug candidate, CNM-Au8®, for neurological diseases such as amyotrophic lateral sclerosis (ALS) and multiple sclerosis (MS), among other activities.
Canaccord Genuity is acting as the sole placement agent for the offerings, which are expected to close around October 1, 2024, subject to customary closing conditions.
The securities offered to the healthcare-focused institutional investor are being made pursuant to a shelf registration statement previously filed with the SEC. The accompanying warrants will be issued in a concurrent private placement and are not subject to registration.
The private placements to the current stockholders and affiliated investors, as well as the warrants, are exempt from registration under the Securities Act, contingent on an agreement to register the shares for resale following the closing of the transactions.
This press release, based on a statement from Clene Inc., does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities has not been registered under the Securities Act or any state securities laws and therefore may not be offered or sold without registration or an applicable exemption from such registration requirements.
In other recent news, Clene Inc. has made significant strides in the development of its drug candidate CNM-Au8 for treating amyotrophic lateral sclerosis (ALS). The company plans to meet with the U.S. Food and Drug Administration (FDA) to discuss the drug's development and has compiled over 700 patient-years of safety data for CNM-Au8, which has not shown significant safety concerns. In addition, Clene Inc. recently received a Buy rating from both EF Hutton and H.C. Wainwright, with price targets set at $23.00 and $31.00 respectively. The company also announced a 1-for-20 reverse stock split, reducing the outstanding common stock from approximately 128.7 million shares to about 6.4 million shares. Lastly, Clene's investigational drug CNM-Au8 has shown promising results in treating ALS and Rett Syndrome, with new data submitted to the FDA, including results from Phase 2 clinical trials. These developments highlight Clene Inc.'s ongoing efforts in addressing unmet medical needs in neurodegenerative diseases.
InvestingPro Insights
As Clene Inc. (NASDAQ:CLNN) moves forward with its registered direct offering and private placements, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Clene's market capitalization stands at $31.19 million, reflecting its current position as a clinical-stage biopharmaceutical company. The company's revenue for the last twelve months as of Q2 2023 was $0.44 million, with a significant revenue decline of 43.62% over the same period. This aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
Despite the revenue challenges, Clene maintains a high gross profit margin of 81.0%, which could be a positive factor as it continues to develop its lead drug candidate, CNM-Au8®. However, the company's operating income margin of -8166.29% underscores the substantial costs associated with clinical development in the biopharmaceutical industry.
An InvestingPro Tip highlights that Clene is quickly burning through cash, which contextualizes the company's decision to raise approximately $7.3 million through the announced offerings. This capital infusion is likely crucial for supporting the ongoing clinical development of CNM-Au8® and other corporate activities.
It's worth noting that while Clene has experienced a significant return over the last week (7.59% according to InvestingPro data), the company is not currently profitable, as indicated by another InvestingPro Tip. This information is particularly relevant for investors considering the new share offerings and warrants.
For those interested in a deeper analysis, InvestingPro offers additional tips and insights that could be valuable in assessing Clene's financial health and market position. There are 6 more InvestingPro Tips available for CLNN, providing a more comprehensive view of the company's prospects and challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.