Cibus, Inc. Announces Pricing of $27.5 Million Public Offering

Rhea-AI Summary

Cibus (NASDAQ: CBUS), an agricultural biotechnology company, has announced the pricing of a public offering of 15,714,285 shares of Class A Common Stock at $1.75 per share, aiming to raise approximately $27.5 million in gross proceeds. The offering includes participation from institutional and strategic investors, with the Chairman of Cibus' board of directors purchasing 5,714,286 shares. The company plans to use the proceeds to fund the development of weed management productivity traits in Rice and for working capital purposes while pursuing longer-term financing. A.G.P./Alliance Global Partners is serving as the sole placement agent, with the offering expected to close around June 6, 2025.

Positive

• Chairman of the board shows confidence by purchasing 5.7M shares
• Funding secured for development of weed management traits in Rice
• Successfully priced offering with institutional and strategic investors participation

Negative

• Significant dilution for existing shareholders with 15.7M new shares
• Low offering price at $1.75 per share suggests weak market position
• Company indicates need for additional longer-term financing

Insights

Financial Analyst

Cibus' $27.5M offering provides short-term cash but dilutes shares by 19% at below-market pricing while seeking longer-term financing.

Cibus is raising $27.5 million through a public offering of 15.7 million shares priced at $1.75 per share. This capital raise appears to be a bridge financing solution, as the company explicitly states it's pursuing "longer-term financing" options. The pricing suggests some urgency - typically secondary offerings come with some discount, but the 19% increase in outstanding shares signals significant dilution for existing shareholders. The participation of the Chairman (acquiring 5.7 million shares) sends mixed signals - while it demonstrates insider confidence, the large stake also raises questions about internal funding priorities.

The company plans to use proceeds primarily for developing weed management productivity traits in Rice along with general working capital. This focus on a specific agricultural application suggests Cibus is narrowing its development pipeline, potentially to extend its runway while seeking more substantial financing. The involvement of institutional and strategic investors provides some validation, but the relatively modest size of the offering indicates Cibus likely needs a more comprehensive funding solution in the near term. This capital infusion should provide operational runway, but investors should monitor the company's success in securing the mentioned longer-term financing, as this appears to be a stopgap measure rather than a complete funding solution.

SAN DIEGO, June 05, 2025 (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 the pricing of its previously announced public offering of 15,714,285 shares of its Class A Common Stock, at a purchase price of $1.75 per share, including to institutional and strategic investors, as well as the Chairman of Cibus’ board of directors (5,714,286 shares).

All of the shares of Class A Common Stock in the offering will be sold by Cibus. The gross proceeds of the offering are expected to be approximately $27.5 million before deducting placement agent fees and other estimated offering expenses payable by the Company. The offering is expected to be closed on or about June 6, 2025, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the offering to fund further development of the Company’s weed management productivity traits in Rice and for working capital and general corporate purposes, as it pursues longer-term financing.

A.G.P./Alliance Global Partners is acting as the 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), including base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 30, 2023, 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. Copies of the prospectus supplement and the accompanying base prospectus, when available, may be obtained 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 the securities being offered, 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 $300 billion annually. Cibus’ long-term focus is productivity traits for major, large-acreage row crops. Cibus is not a seed company. It is a technology company that uses proprietary high-throughput gene editing technology to develop crop traits at a fraction of the time and cost of conventional breeding and to license them to seed companies in exchange for royalties on seed sales.

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 size and price of Cibus (CBUS) June 2025 public offering?

Cibus is offering 15,714,285 shares of Class A Common Stock at $1.75 per share, aiming to raise approximately $27.5 million in gross proceeds.

How will Cibus (CBUS) use the proceeds from its 2025 public offering?

Cibus plans to use the proceeds to fund the development of weed management productivity traits in Rice and for working capital and general corporate purposes.

Who is participating in the Cibus (CBUS) 2025 public offering?

The offering includes institutional and strategic investors, with the Chairman of Cibus' board of directors purchasing 5,714,286 shares.

When is the Cibus (CBUS) public offering expected to close?

The offering is expected to close on or about June 6, 2025, subject to customary closing conditions.

Who is the placement agent for Cibus (CBUS) 2025 public offering?

A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.