Celcuity rises after upsized convertible bond, stock sale
30/07/2025 13:14
Corrects 8th bullet to say co will not enter capped call transactions ** Shares of Celcuity CELC.O up 1.3% to $39 before the bell after biotech firm raises more capital than targeted ** Minneapolis, Minnesota-based CELC early Weds announced pricing concurrent public offerings of $175 mln 2.75% 6-yr convertible bonds (CBs) and ~2.2 mln shares, including 400,000 pre-funded warrants, at $38 ** Total gross proceeds for the stock offering equate to $85 mln ** Initial conversion price on the CBs set at $51.30, a 35% premium to stock offering price ** On Tues, CELC shares ended session up 4.7% at $38.50 after co late Mon unveiled planned offerings of $150 mln CBs and $75 mln of stock ** On Mon, CELC shares soared 167% after co said its experimental drug, gedatolisib, combined with Pfizer's PFE.N Ibrance and AstraZeneca's AZN.L Faslodex, delayed advanced breast cancer progression by more than seven months, compared to Faslodex alone in a late-stage study ** CELC intends to use net proceeds from the offerings for working capital and general purposes, including for clinical trial, commercial launch and R&D expenditures ** In connection with the CBs offering, co determined that it will not enter into capped calls transactions, which are derivative transactions to offset dilution ** Jefferies, TD Cowen and Leerink are jt bookrunners for the offerings ** All 8 analysts covering CELC are bullish; median PT of $54 up from $28 a month ago, per LSEG data (Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@tr.com 1-646-279-6380))