SAN DIEGO - BioAtla, Inc. (NASDAQ: BCAB), a biotechnology firm specializing in Conditionally Active Biologic (CAB) antibody therapeutics, with a current market capitalization of $57.53 million, announced today the sale of 9,679,158 shares of common stock in a registered direct offering. Accompanying each share is a warrant to purchase additional stock at $1.19 per share, exercisable six months post-issuance and expiring after 5.5 years. Priced at $0.9520 per share and warrant, the offering is expected to close today, subject to standard closing conditions.
The anticipated gross proceeds from the sale are roughly $9.2 million, before deducting offering-related expenses. BioAtla aims to allocate the net proceeds, in conjunction with its current funds, towards research and development. According to InvestingPro data, the company maintains a healthy current ratio of 3.11 and holds more cash than debt on its balance sheet, though it's currently burning through cash at a significant rate. Discover 10+ additional financial health indicators with InvestingPro's comprehensive analysis tools. The focus will be on advancing mid-stage clinical programs, including Phase 1 and Phase 2 data readouts for its T-Cell Engager (TCE) and Antibody Drug Conjugate (ADC) therapies, slated for the second quarter of 2025 and the first half of 2026, respectively.
Tungsten Advisors, via Finalis Securities LLC, served as the sole placement agent. The securities were offered pursuant to a shelf registration statement, effective since May 18, 2022. Details of the offering will be available in a prospectus supplement filed with the SEC.
BioAtla, operating out of San Diego and Beijing through BioDuro-Sundia, is focused on developing monoclonal and bispecific antibodies and other protein therapeutic product candidates. Its CAB products are designed for more selective targeting and reduced toxicity. The company boasts over 780 active patent matters globally, with more than 500 issued patents.
Currently, BioAtla has two CAB programs in Phase 2 clinical testing and a dual CAB bispecific T-cell engager antibody in Phase 1 development. Trading near its 52-week low of $1.14 and down over 51% year-to-date, the stock appears undervalued according to InvestingPro's Fair Value analysis. Analyst price targets range from $5 to $13, suggesting significant upside potential. Access detailed valuation metrics and analyst recommendations through InvestingPro's exclusive Research Reports, available for 1,400+ US stocks. In the fall of 2024, BioAtla licensed a pre-clinical lead stage CAB-Nectin4 x CAB-CD3 TCE program for significant financial terms, including upfront payments, milestones, and royalties.
This press release contains forward-looking statements, and actual results may vary due to inherent uncertainties and risks. The information is based on a press release statement, and BioAtla has not updated the information since its initial publication.
In other recent news, BioAtla has seen a decrease in its net loss for the third quarter of 2024, down to $10.6 million from $33.3 million in the previous year. This reduction was primarily due to a decrease in research and development expenses. The company also reported promising trial data for CAB-ROR2-ADC in treating refractory head and neck cancer and early Phase II results of CAP CTLA-4 antibody showing tumor reduction in patients. The FDA has granted Fast Track designation to CAB-ROR2-ADC.
Additionally, BioAtla entered a licensing agreement with Context Therapeutics, which could yield up to $133.5 million. With $56.5 million in cash and equivalents, the company expects to fund operations into early 2026. However, H.C. Wainwright has downgraded BioAtla's stock to Neutral, citing the need for clarity on the company's pipeline development path.
BioAtla is also in discussions with potential strategic partners to out-license one of its Phase 2 assets. The outcome of these discussions is expected to influence the company's development plans. These are recent developments that have taken place within BioAtla.
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