SAN DIEGO - Cibus Inc. (NASDAQ:CBUS), a biotech firm specializing in gene editing for agricultural traits, has announced a registered direct offering of its Class A Common Stock and accompanying warrants. The sale involves institutional, strategic, and existing investors, including the company's CEO, Rory Riggs. The offering is set to close on or about June 13, 2024, with the expectation to raise gross proceeds of approximately $13 million.
The transaction includes the sale of 1,298,040 shares and equal warrants, with the combined purchase price set at $10.00 for investors and $10.20 for the CEO. Warrants are exercisable immediately at $10.00 per share, except for those issued to Riggs, which are set at $10.07. These warrants will be valid for five years post-issuance and are redeemable under specific conditions related to the company's soybean platform and stock price performance.
Cibus, not a seed company but a technology provider, develops and licenses its gene-edited traits to seed companies for royalties. It focuses on traits that enhance productivity and address sustainability challenges in agriculture, with traits for canola, corn, rice, soybean, and wheat. The company has several traits in commercial development and advanced trial stages, including those for Pod Shatter Reduction and Sclerotinia resistance.
The net proceeds from the offering are intended for the development of new and existing seed traits, support of the Trait Machine operations, and general corporate purposes. A.G.P./Alliance Global Partners (NYSE:GLP) is acting as the sole placement agent for the offering.
This offering follows an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on October 27, 2023.
The information in this article is based on a press release statement from Cibus Inc.
In other recent news, Cibus has reported its Q1 2024 financial results, showcasing a strategic shift from research and development to commercial operations. The gene editing company has launched commercial platforms in canola and rice and plans to expand into the wheat and soybean sectors. The company is well-funded, with $24.5 million in cash, and is planning to raise additional capital to ensure its operations can continue into Q3 2024.
Cibus is optimistic about the launch of its soybean platform and the commercialization of its advanced traits. The company is also exploring partnerships with leading seed companies for wheat trait development. Greenhouse results for advanced traits such as Sclerotinia resistance and herbicide tolerance are expected in 2024.
However, the company's cash runway is limited, necessitating additional capital raising in the near term. Concerns about intellectual property protection and payment for gene-edited traits in international markets were also raised. Despite these challenges, Cibus has made significant progress in gene editing, focusing on traits that provide economic benefits to farmers, and regulatory endorsements could lead to global approval and expansion of gene-edited traits.
InvestingPro Insights
As Cibus Inc. (NASDAQ:CBUS) embarks on its latest capital-raising venture, the company's financial health and stock performance metrics provide valuable context for investors considering participation in the offering. According to InvestingPro data, Cibus has a market capitalization of $248.61 million and is currently trading at a price-to-book ratio of 0.89 as of the last twelve months leading up to Q1 2024. Remarkably, the company has experienced a staggering revenue growth rate of 1289.22% during the same period, highlighting the significant strides in their operational achievements.
However, it's not all green for Cibus. InvestingPro Tips suggest caution due to the stock entering oversold territory based on the Relative Strength Index (RSI), and the company's rapid cash burn. Moreover, the stock price has been notably volatile, with a 43.24% decline over the last month and a 44.79% drop over the last three months, reflecting investor sentiment and market reactions to the company's financials and growth prospects.
Despite these challenges, the potential for Cibus lies in its innovative gene editing technology for agriculture, which if successful, could revolutionize the industry. Investors with an eye on the long-term potential might see the current low valuation as an opportunity. For those interested in a deeper dive into Cibus's financial health and stock performance, additional InvestingPro Tips are available, providing a comprehensive analysis to inform investment decisions. To explore these insights, visit https://www.investing.com/pro/CBUS and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It's worth noting that there are 10 additional InvestingPro Tips available for Cibus, which could offer further clarity on the company's trajectory and help investors make more informed decisions in light of the current offering.
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