Calithera Biosciences slides on equity raise

Calithera Biosciences

16/04/2020 12:02

** Calithera Biosciences Inc  CALA.O  down ~14% at $6.75
premarket after co prices overnight follow-on
    ** Cancer drug developer offers 5 mln shares at $6.25,
raises $31.25 mln to fund clinical trials  urn:newsml:reuters.com:*:nGNXbc0ScZ
    ** Offering prices at 20% discount to stock's Weds close and
near top end of $6.00-$6.30 range marketed by sole bookrunner
Citigroup  urn:newsml:reuters.com:*:nL2N2C32DA
    ** Per filing https://www.sec.gov/Archives/edgar/data/1496671/000119312520108089/d913280d424b5.htm,
 co has cash/cash equivalents and investments of ~$138 mln at
end-Mar
    ** Deal size represents ~8% of co's total shares outstanding
    ** CALA hit fresh 1-yr high of $8.18 on Weds before
finishing session up ~18% at $7.85, taking YTD gain to 37.5%
    ** Wall Street overwhelmingly bullish on CALA with avg
rating of "strong buy" among 6 brokerages; PTs range from $6-$20
(Refinitiv data)

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