ContraFect Corporation Announces Proposed Public Offering of Common Stock and Warrants

Rhea-AI Summary

ContraFect Corporation (Nasdaq: CFRX) has announced an underwritten public offering of its common stock and warrants, subject to market conditions. The proceeds will support the Phase 3 DISRUPT trial of exebacase (CF-301) for treating Staph aureus bacteremia and fund activities for CF-370, a targeted treatment for Pseudomonas aeruginosa, along with general corporate purposes. Mizuho Securities USA LLC and Cantor Fitzgerald & Co. are managing the offering, conducted under an effective shelf registration with the SEC.

Positive

• The offering aims to fund the Phase 3 DISRUPT trial for exebacase (CF-301), potentially advancing treatment options.
• Proceeds will also support development activities for CF-370, targeting resistant Pseudomonas aeruginosa.

Negative

• The underwritten public offering could lead to shareholder dilution depending on the final number of shares issued.
• Market conditions may affect the completion and terms of the offering, introducing uncertainty.

YONKERS, N.Y., May 21, 2020 (GLOBE NEWSWIRE) -- ContraFect Corporation (Nasdaq: CFRX), a clinical-stage biotechnology company focused on discovering and developing direct lytic agents for the treatment of life-threatening infectious diseases, today announced that it has commenced an underwritten public offering of shares of its common stock and warrants to purchase additional shares of its common stock.  The public offering is subject to market conditions, and there can be no assurance as to whether or when the public offering may be completed, or the actual size or terms of the public offering. All of the securities in the public offering are to be sold by ContraFect.   

ContraFect intends to use the net proceeds of the public offering to continue funding its Phase 3 DISRUPT trial of exebacase (CF-301) in Staph aureus bacteremia, including right-sided endocarditis, to fund advancement of its portfolio, including IND-enabling activities for CF-370, an engineered gram-negative lysin directly targeting highly-resistant Pseudomonas aeruginosa, and for working capital and other general corporate purposes.

Mizuho Securities USA LLC and Cantor Fitzgerald & Co. are acting as book-running managers for the public offering.

The public offering is being made pursuant to an effective shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (SEC) on November 30, 2018 and declared effective on December 13, 2018. A preliminary prospectus supplement describing the terms of the public offering will be filed with the SEC and will form a part of the effective registration statement. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the public offering may be obtained, when available, by contacting Mizuho Securities USA LLC, Attention: Equity Capital Markets,  1271 Avenue of the Americas, 3rd Floor, New York, NY 10020, or by email at US-ECM@us.mizuho-sc.com, or by telephone at (212) 205-7600 or Cantor Fitzgerald & Co., Attention: Capital Markets, 499 Park Avenue, 6^th Floor, New York, NY 10022, or by email at prospectus@cantor.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in the public offering or the private placement, nor shall there be any sale of these securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

Investor Relations Contact

Michael Messinger
ContraFect Corporation
Tel: 914-207-2300
Email: mmessinger@contrafect.com

FAQ

What is the purpose of ContraFect's public offering on May 21, 2020?

The public offering aims to fund the Phase 3 DISRUPT trial of exebacase and support the advancement of CF-370, among other corporate needs.

Who is managing ContraFect's public offering?

Mizuho Securities USA LLC and Cantor Fitzgerald & Co. are the book-running managers for the offering.

How might the public offering affect ContraFect's shareholders?

The offering may cause dilution of existing shares, depending on how many new shares are issued.

When was the effective shelf registration statement filed for ContraFect's public offering?

The effective shelf registration statement was filed with the SEC on November 30, 2018, and declared effective on December 13, 2018.

What are the risks associated with the public offering announced by ContraFect?

The public offering is subject to market conditions, which may impact its completion and the terms offered.