Corbus Pharmaceuticals Announces Pricing of Public Offering
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Corbus Pharmaceuticals' decision to price their public offering at $19.00 per share for a total of approximately $82.2 million is indicative of the company's strategic efforts to raise capital. This move is significant as it injects liquidity into the company, potentially earmarking funds for research and development, commercialization efforts, or expansion of their oncology portfolio. It's essential to assess the offering price in relation to the current market price to gauge investor sentiment. If the offering price is at a discount, it may attract investors but could also signal management's lack of confidence in the stock's short-term prospects. Conversely, a premium price might suggest strong future performance expectations but could deter immediate uptake by investors.
The provision of a 30-day option for underwriters to purchase additional shares is a common hedge against excessive market volatility post-offering. This could stabilize the stock price and provide a safety net for both the company and the underwriters. Stakeholders should monitor the stock's performance closely following the closure of the offering, as it may affect the company's market capitalization and investor perception.
From a market perspective, the impact of Corbus Pharmaceuticals' public offering extends beyond immediate capital infusion. The offering size and price point can reflect the company's market positioning and the industry's appetite for investment in precision oncology. For investors, the offering provides a tangible measure of Corbus' growth trajectory and risk profile. It's crucial to analyze the offering in the context of the company's historical financial performance, projected revenue streams and the competitive landscape of the oncology market. This event may also serve as a bellwether for other biotech firms considering public offerings, setting a precedent for pricing strategies and investor expectations in this sector.
The biotechnology landscape is highly competitive, with precision oncology being a particularly fast-evolving field. Corbus Pharmaceuticals' public offering must be evaluated against the backdrop of current industry trends, such as the increasing importance of personalized medicine and the influx of venture capital into biotech startups. The success of this offering could signal to the market that investors are confident in the long-term prospects of precision oncology. However, it's also important to consider the dilutive effect of issuing new shares on existing shareholders and how this might influence the company's strategic decisions moving forward, particularly in terms of pipeline development and potential partnerships or acquisitions.
NORWOOD, Mass., Jan. 31, 2024 (GLOBE NEWSWIRE) -- Corbus Pharmaceuticals Holdings, Inc. (Nasdaq: CRBP) (“Corbus” or the “Company”), a precision oncology company with a diversified portfolio, today announced the pricing of an underwritten public offering of 4,325,000 shares of its common stock at a public offering price of
Corbus intends to use the net proceeds of the offering to fund the clinical development of its pipeline and for working capital and other general corporate purposes.
Jefferies is acting as sole book-running manager for the offering. H.C. Wainwright & Co. and Oppenheimer & Co. are acting as lead managers for the offering.
The offering is being made pursuant to a registration statement that was filed with the U.S. Securities and Exchange Commission (the “SEC”) and became effective on June 13, 2023. Copies of the final prospectus supplement and accompanying prospectus relating to these securities may also be obtained, when available, by sending a request to Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York, 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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.
About Corbus
Corbus Pharmaceuticals Holdings, Inc. is a precision oncology company with a diversified portfolio and is committed to helping people defeat serious illness by bringing innovative scientific approaches to well understood biological pathways. Corbus’ pipeline includes CRB-701, a next generation antibody drug conjugate that targets the expression of Nectin-4 on cancer cells to release a cytotoxic payload, CRB-601, an anti-integrin monoclonal antibody which blocks the activation of TGFβ expressed on cancer cells, and CRB-913, a highly peripherally restricted CB1 inverse agonist for the treatment of obesity. Corbus is headquartered in Norwood, Massachusetts.
Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements about Corbus’ expectations regarding the completion of its public offering and the anticipated use of proceeds therefrom. Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “may,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements necessarily contain these identifying words. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the offering, as well as risks and uncertainties associated with Corbus’ business and finances in general, including the risks and uncertainties in the section captioned “Risk Factors” in the final prospectus supplement related to the public offering that will be filed with the SEC and the Company’s most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. There can be no assurances that we will be able to complete the offering on the anticipated terms, or at all. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Corbus undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
Corbus Pharmaceuticals Contacts:
Sean Moran
Chief Financial Officer
Corbus Pharmaceuticals
smoran@corbuspharma.com
Bruce Mackle
Managing Director
LifeSci Advisors, LLC
bmackle@lifesciadvisors.com
FAQ
What is the pricing of the underwritten public offering of Corbus Pharmaceuticals Holdings, Inc.?
How many shares of common stock are being offered by Corbus Pharmaceuticals Holdings, Inc.?
What is the 30-day option granted to the underwriters by Corbus Pharmaceuticals Holdings, Inc.?
Who is selling the securities in the offering?
