Calithera Biosciences falls on stock offering plans

Calithera Biosciences

15/04/2020 21:44

** Calithera Biosciences Inc  CALA.O  down ~10% after hours
as co looks to raise equity
    ** Cancer drug developer announces follow-on to fund
clinical trials  urn:newsml:reuters.com:*:nGNX3qjmcp
    ** Sources say sole bookrunner Citigroup marketing deal size
of ~$30 mln in range of $6.00-$6.30, an up to 24% discount to
stock's last sale
    ** Offering slated to price overnight/before the bell Thurs
    ** Co has ~64.7 mln shares outstanding, per Refinitiv data,
equating to market value of ~$500 mln
    ** CALA finished regular session on Weds up 17.7% at $7.85
after hitting new 1-yr high of $8.18. Stock extended YTD gain to
37.5%
    ** Wall Street overwhelmingly bullish with avg rating of
"strong buy" among 6 brokerages covering the stock; PTs range
$6-$20 (Refinitiv data)

 (Reporting by Lance Tupper)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))