CARLSBAD, Calif. - Lineage Cell Therapeutics (NYSE:LCTX), Inc. (NYSE American and TASE: LCTX), a biotech company focused on developing cell therapies, has confirmed the sale of over 13 million common shares in a registered direct offering. The shares were sold at $1.04 each, equal to the closing price on February 5, 2024.
The agreement was finalized before the opening of the markets on Tuesday, with the transaction set to close around February 8, 2024, pending standard closing conditions.
Broadwood Partners, L.P., associated with board member Neal Bradsher, has committed to purchasing around 6.7 million shares. Board member Don M. Bailey is set to acquire approximately 100,000 shares.
The gross proceeds from the sale are expected to reach $14 million, not accounting for estimated offering expenses. These funds are earmarked for general corporate use, potentially covering clinical trials, research and development, administrative expenses, and working capital needs.
The offering was made possible by a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) on March 11, 2021, and made effective on March 19, 2021. The sale of these securities will be detailed in a final prospectus supplement and an accompanying base prospectus filed with the SEC.
Lineage Cell Therapeutics is engaged in developing novel cell therapies to address unmet medical needs. Its portfolio includes a range of allogeneic product candidates at various clinical and preclinical stages, targeting conditions like age-related macular degeneration, acute spinal cord injuries, non-small cell lung cancer, auditory neuropathy, and vision loss due to photoreceptor dysfunction or damage.
The information in this article is based on a press release statement from Lineage Cell Therapeutics, Inc.
InvestingPro Insights
In light of Lineage Cell Therapeutics' recent share sale, some key financial metrics and expert analysis from InvestingPro offer additional context for investors. The company's market capitalization stands at approximately $192.49 million, indicating its size in the biotech industry. Despite a challenging revenue growth trend, with a decrease of 37.15% in the last twelve months as of Q3 2023, the company maintains a strong gross profit margin of 94.11%. This high margin suggests efficiency in the company's cost management relative to its revenue generation.
One of the notable InvestingPro Tips for Lineage Cell Therapeutics is its impressive cash position, as the company holds more cash than debt on its balance sheet. This could provide financial flexibility to support its various clinical trials and R&D efforts. Additionally, two analysts have revised their earnings upwards for the upcoming period, which may indicate a more optimistic outlook on the company's financial performance.
However, it's also important to note that analysts do not expect Lineage Cell Therapeutics to be profitable this year, and the company is rapidly burning through cash. The absence of dividend payments to shareholders reflects the company's focus on reinvesting into its growth and development. For investors interested in a deeper dive into Lineage Cell Therapeutics' financial health and future prospects, there are additional InvestingPro Tips available. By using the coupon code SFY24 or SFY241, investors can get an additional 10% off a 2-year or 1-year InvestingPro+ subscription, respectively, and gain access to a wealth of expert analysis and tips.
With the next earnings date approaching on March 14, 2024, stakeholders will be watching closely to see how the company's strategic initiatives align with its financial outcomes. For those considering an investment in Lineage Cell Therapeutics, the InvestingPro platform offers 9 additional tips to help make an informed decision.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.