SAN DIEGO - Cibus Inc. (NASDAQ: CBUS), a biotechnology company specializing in gene editing for agricultural applications, has announced plans for an underwritten public offering of its Class A common stock. The company, which is not a seed producer but a technology provider to seed companies, also intends to offer underwriters a 45-day option to purchase additional shares.
The size and terms of the offering are currently unspecified and subject to market conditions. There is no certainty regarding the completion or timing of the offering. Existing institutional investors and Cibus CEO Rory Riggs have expressed non-binding interest in the stock offering, but may ultimately choose not to participate.
Joint bookrunning managers for the offering are Roth Capital Partners and A.G.P./Alliance Global Partners (NYSE:GLP). The proceeds from the offering are earmarked for the development of new and existing seed traits, operations of the company's Trait Machine, as well as general corporate purposes.
This offering is part of a shelf registration statement filed with the Securities and Exchange Commission on June 30, 2023, and declared effective on October 27, 2023. Potential investors are advised to review the preliminary prospectus supplement and the accompanying prospectus, along with other relevant documents filed with the SEC, before making any investment decisions.
Cibus is recognized for its gene editing technology that addresses significant agricultural challenges like pests and diseases, which have a substantial economic impact globally. The company's pipeline includes traits for Pod Shatter Reduction, Sclerotinia resistance, and weed management, with some traits already in commercial development stages.
This press release contains forward-looking statements and potential investors should be cautious as the offering's completion is influenced by various factors including market conditions. Cibus has made it clear that the press release is not an offer to sell or a solicitation of an offer to buy securities. This article is based on a press release statement.
InvestingPro Insights
As Cibus Inc. (NASDAQ: CBUS) navigates its public offering, potential investors may find it helpful to consider the financial health and market performance of similar companies in the biotechnology sector. InvestingPro offers valuable insights into such companies, providing a comprehensive understanding of their financial standing and market trends.
For instance, Allecra Therapeutics (ALCLS), another player in the biotech field, holds more cash than debt on its balance sheet, which is a positive sign of the company's financial stability. Additionally, analysts anticipate sales growth for Allecra in the current year, suggesting potential for revenue expansion that investors in Cibus may also look for as a sign of robust business prospects. These InvestingPro Tips reflect the importance of financial health and growth prospects in evaluating biotech investments.
In terms of market performance, Allecra has experienced strong return over the last month, with a 14.08% price total return, indicating a favorable short-term investor sentiment. This metric, alongside the company's current market capitalization of $231.45 million, can provide a benchmark for investors comparing Cibus's market positioning and potential growth trajectory.
The InvestingPro product offers additional insights into companies like Allecra, including a total of 7 InvestingPro Tips that can be explored for a deeper analysis. These tips, alongside real-time metrics, can be instrumental in making informed investment decisions in the dynamic biotech sector.
It's worth noting that, according to InvestingPro data, Allecra does not pay a dividend to shareholders, which is a common characteristic in the biotech industry where companies often reinvest earnings back into research and development. Investors looking at Cibus's offering might consider this as part of their overall investment strategy.
For those interested in gaining further insights into companies like Allecra, more InvestingPro Tips can be found at https://www.investing.com/pro/ALCLS.
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