Cibus Announces $13.0 Million Registered Direct Offering
Rhea-AI Summary
Cibus has announced a $13.0 million registered direct offering. The company will sell 1,298,040 shares of its Class A Common Stock and warrants to purchase up to 1,298,040 shares at $10.00 per share for institutional investors and $10.20 per share for the CEO, Rory Riggs. The warrants, exercisable immediately, will expire in five years. Gross proceeds from the offering are approximately $13.0 million before expenses. Closing is expected on June 13, 2024. The funds will support the development of new and existing seed traits, Trait Machine operations, and general corporate purposes. A.G.P./Alliance Global Partners is the sole placement agent.
Positive
- Cibus will raise approximately $13.0 million in gross proceeds.
- Funds will support further development of new and existing seed traits, Trait Machine operations, and general corporate purposes.
- Warrants are exercisable immediately, providing potential future liquidity.
- Participation by CEO Rory Riggs indicates strong internal confidence.
Negative
- The offering may lead to shareholder dilution with the issuance of 1,298,040 new shares.
- Warrants being exercisable at $10.00 could lead to future stock price pressure.
- Net proceeds will be lower after deducting placement agent fees and other expenses.
- The offering is dependent on the satisfaction of customary closing conditions, which introduces potential risks.
News Market Reaction
On the day this news was published, CBUS declined 3.08%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SAN DIEGO, June 12, 2024 (GLOBE NEWSWIRE) -- Cibus, Inc. (Nasdaq: CBUS) (the “Company” or “Cibus”), a leading agricultural biotechnology company that uses proprietary gene editing technologies to develop plant traits (or specific genetic characteristics) in seeds, today announced it has entered into securities purchase agreements with institutional, strategic and existing investors of the Company, as well as with the Company’s CEO, Rory Riggs, for the purchase and sale of 1,298,040 shares of its Class A Common Stock, par value
The gross proceeds of the offering will be approximately
A.G.P./Alliance Global Partners is acting as sole placement agent for the offering.
This offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-273062) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective on October 27, 2023. A prospectus supplement describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Cibus
Cibus is a leader in gene edited productivity traits that address critical productivity and sustainability challenges for farmers such as diseases and pests which the United Nations estimates cost the global economy approximately
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as "anticipates," "believes," "continue," "estimates," "expects," "intends," "may," "might," "plans," "predicts," "projects," "should," "targets," "will," or the negative of these terms and other similar terminology. Forward-looking statements in this press release include, but are not limited to, statements regarding the anticipated closing of the offering and the expected use of the proceeds from the offering. Completion of the offering is subject to numerous factors, many of which are beyond Cibus’ control, including, without limitation, market conditions, failure to satisfy customary closing conditions and the risk factors and other matters set forth in the prospectus supplement and accompanying prospectus included in the registration statement and the documents incorporated by reference therein. You are cautioned not to place undue reliance on any forward-looking statements made by Cibus’ management, which are based only on information currently available to it when, and speak only as of the date, such statement is made. Cibus does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by law.
CIBUS CONTACTS:
INVESTOR RELATIONS
Karen Troeber
ktroeber@cibus.com
858-450-2636
Jeff Sonnek – ICR
jeff.sonnek@icrinc.com
MEDIA RELATIONS
Colin Sanford
colin@bioscribe.com
203-918-4347
FAQ
What is the value of the Cibus registered direct offering?
When is the closing date for the Cibus registered direct offering?
How many shares are being sold in the Cibus direct offering?
What is the exercise price for the Cibus warrants?
What will the proceeds from the Cibus offering be used for?
