SUNNYVALE, Calif. - BioCardia, Inc. (NASDAQ:BCDA), a company specializing in cellular therapies for cardiovascular and pulmonary diseases, has announced the pricing of its public offering. The offering has been upsized, and now includes 2.4 million shares of common stock and warrants to purchase an additional 2.4 million shares, with a combined price of $3.00 for each share and accompanying warrant.
The offering, which is expected to close on September 3, 2024, is anticipated to generate gross proceeds of $7.2 million for the company, before accounting for placement agent fees and other expenses. The warrants are immediately exercisable at a price of $3.00 per share and will expire five years from the date of issue.
Management and directors of BioCardia, along with institutional and certain existing investors, have participated in this offering. BioCardia intends to utilize the net proceeds for general corporate purposes, including working capital and advancing its investigational biotherapeutic candidates and delivery partnering business.
A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the transaction. The offering is made possible through a registration statement on Form S-1, declared effective by the Securities and Exchange Commission (SEC) on August 29, 2024. An additional registration statement filed under Rule 462(b) became effective upon filing.
Prospective investors can obtain copies of the prospectus from the SEC's website or directly from A.G.P./Alliance Global Partners when available. The offering is contingent upon market conditions and other customary closing conditions, and there is no assurance as to whether or when the offering may be completed.
This news article is based on a press release statement from BioCardia, Inc., and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, BioCardia, Inc. has received FDA clearance to market its Morph DNA Steerable Introducer product family, a range of medical instruments designed for use in various cardiology and vascular procedures. This clearance applies to sixteen products with varying lengths and diameters, expected to be applicable in a wide array of clinical settings. The products, priced starting at $1,000, could be relevant for over a million procedures annually in the U.S.
In addition to this, BioCardia has also received FDA approval for a significant protocol amendment for the ongoing CardiAMP Heart Failure II Trial. This amendment will potentially allow a broader patient population to benefit from the company's CardiAMP cell therapy. The CardiAMP Heart Failure II Trial is a confirmatory Phase 3 study investigating the therapeutic potential of CardiAMP, an autologous cell therapy product candidate for patients with ischemic heart failure of reduced ejection fraction.
BioCardia's Q2 2024 financial results revealed a decrease in net loss to $1.6 million and a 53% reduction in expenses year-over-year. Despite reporting minimal revenues of $3,000 for Q2 2024, CEO Peter Altman expressed optimism for the end of 2024 and the outlook for 2025. These recent developments reflect BioCardia's commitment to advancing heart failure treatments and exploring growth opportunities.
InvestingPro Insights
As BioCardia, Inc. (NASDAQ:BCDA) gears up for its upsized public offering, potential investors may be weighing the recent performance and financial health of the company. According to InvestingPro data, BioCardia has a market capitalization of $8.54 million, indicating the size of the company in the competitive biotechnology landscape. The data also shows that BioCardia has had significant volatility in stock performance, with a notable return of over 61% in the last week, yet the stock has declined more than 51% over the last six months.
InvestingPro Tips highlight that BioCardia is currently operating with a moderate level of debt and has been quickly burning through cash, which may be a concern for investors looking for financial stability. The company has also suffered from weak gross profit margins and is not expected to be profitable this year. This information is crucial for understanding the risks associated with the investment. Moreover, with BioCardia's short-term obligations exceeding its liquid assets, the proceeds from the offering may provide much-needed capital to support the company's operations and development plans.
For those considering an investment in BioCardia, it's worth noting that the company does not pay a dividend to shareholders, which may influence the investment decision for income-focused investors. For a deeper dive into BioCardia's financials and additional insights, there are further InvestingPro Tips available, providing a comprehensive analysis of the company's financial health and stock performance.
It's important for investors to review these metrics and tips in the context of the current offering and the company's strategic plans for growth. With the additional registration statement effective and the offering set to close soon, keeping an eye on the company's financial indicators is essential for making an informed investment decision.
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