BioCardia Announces Closing of Upsized $7.2 Million Public Offering Priced At-The-Market Under Nasdaq Rules

Rhea-AI Summary

BioCardia, Inc. (Nasdaq: BCDA) has successfully closed an upsized $7.2 million public offering priced at-the-market under Nasdaq rules. The offering included 2,400,000 shares of common stock (or pre-funded warrants) and warrants to purchase up to 2,400,000 shares at a combined price of $3.00 per share and accompanying warrant. The warrants have an exercise price of $3.00 per share, are immediately exercisable, and will expire in five years. The offering saw participation from management, directors, institutional investors, and existing investors. BioCardia plans to use the net proceeds for working capital and general corporate purposes, including advancing their investigational biotherapeutic candidates and biotherapeutic delivery partnering business.

Positive

• Successful closing of an upsized $7.2 million public offering
• Participation from management, directors, and institutional investors
• Warrants have an exercise price equal to the offering price, potentially indicating confidence in future stock performance
• Funds to be used for advancing biotherapeutic candidates and delivery partnering business

Negative

• Potential dilution of existing shareholders due to the issuance of new shares
• The offering was priced at-the-market, which may not represent a premium to current stock price

Insights

Financial Analyst

BioCardia's $7.2 million public offering is a significant capital raise for the company, priced at-the-market under Nasdaq rules. The upsized offering suggests strong investor interest, including participation from management, directors and institutional investors. This infusion of capital should strengthen BioCardia's financial position, providing important funds for advancing their biotherapeutic candidates and delivery partnering business.

The offering structure, combining common stock with warrants, offers potential for additional future funding if the warrants are exercised. With a $3.00 exercise price matching the offering price, it indicates confidence in the company's near-term prospects. However, investors should note the dilutive effect of issuing 2.4 million new shares, which may impact earnings per share in the short term.

Biotech Industry Expert

This capital raise is important for BioCardia's advancement in the competitive cellular and cell-derived therapeutics space. The funds will likely accelerate the development of their cardiovascular and pulmonary disease treatments, potentially shortening the time to market. The strong investor support, especially from insiders, signals confidence in BioCardia's pipeline and technology.

However, the biotech sector is known for its high cash burn rates and lengthy development timelines. While $7.2 million is substantial, investors should monitor BioCardia's cash runway and development milestones closely. The success of this offering may also position BioCardia more favorably for future partnerships or additional funding rounds, which are often necessary in the biotech industry's capital-intensive landscape.

Market Research Analyst

BioCardia's successful offering demonstrates investor appetite for innovative biotech companies, particularly in the cardiovascular and pulmonary disease sectors. The at-the-market pricing suggests a fair valuation, avoiding the discount often seen in secondary offerings. This could be interpreted as a vote of confidence in BioCardia's current market position and future potential.

The inclusion of warrants with a five-year expiration provides a long-term upside opportunity for investors, aligning their interests with the company's success. However, the market should be prepared for potential volatility as these warrants can be exercised immediately. The broad investor base, including institutional and existing investors, may provide stability to BioCardia's stock in the near term, potentially offsetting any dilution concerns.

SUNNYVALE, Calif., Sept. 09, 2024 (GLOBE NEWSWIRE) -- BioCardia, Inc. [Nasdaq: BCDA], a global leader in cellular and cell-derived therapeutics for the treatment of cardiovascular and pulmonary diseases, today announced the closing of its upsized public offering with participation from management and directors, institutional investors, and certain existing investors of the Company for the purchase and sale of 2,400,000 shares of common stock (or pre-funded warrants in lieu thereof) and warrants to purchase up to 2,400,000 shares of common stock at a combined offering price of $3.00 per share and accompanying warrant, priced at-the-market under Nasdaq rules. The company received aggregate gross proceeds of $7.2 million, before deducting placement agent fees and other offering expenses. The warrants have an exercise price of $3.00 per share, will be exercisable immediately and will expire five years from the issuance date.

The closing of the offering occurred on September 3, 2024. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes, which include, but are not limited to, advancing our investigational biotherapeutic candidates and our biotherapeutic delivery partnering business.

The offering was conducted pursuant to a registration statement on Form S-1 (File No. 333-281448) previously filed with the Securities and Exchange Commission ("SEC") which was declared effective on August 29, 2024, and an additional registration statement on Form S-1 filed pursuant to Rule 462(b), which was filed on August 29, 2024, and became effective upon filing. This offering was made only by means of a prospectus forming part of the effective registration statements. Copies of the preliminary prospectus and copies of the final prospectus, relating to the offering may be obtained on the SEC's website located at http://www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About BioCardia:

BioCardia, Inc., headquartered in Sunnyvale, California, is a global leader in cellular and cell-derived therapeutics for the treatment of cardiovascular and pulmonary disease. CardiAMP^® autologous and CardiALLO™ allogeneic cell therapies are the Company’s biotherapeutic platforms with three clinical stage product candidates in development. These therapies are enabled by its Helix™ biotherapeutic delivery and Morph^® vascular navigation product platforms.

Forward Looking Statements

This press release contains forward-looking statements that are subject to many risks and uncertainties. Forward-looking statements include, among other things, statements relating to the use of proceeds from Company’s offering of securities. These forward-looking statements are made as of the date of this press release.

We may use terms such as “believes,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” “approximately” or other words that convey the uncertainty of future events or outcomes to identify these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained herein, we caution you that forward-looking statements are not guarantees of future performance and that our actual results may differ materially from the forward-looking statements contained in this press release as a result of one or more risk factors. As a result of these factors, we cannot assure you that the forward-looking statements in this press release will prove to be accurate. Additional factors that could materially affect actual results can be found in BioCardia’s Form 10-K filed with the Securities and Exchange Commission on March 27, 2024, under the caption titled “Risk Factors” and in its subsequently filed Quarterly Reports on Form 10-Q. BioCardia expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.

FAQ

What was the size of BioCardia's (BCDA) recent public offering?

BioCardia (BCDA) closed an upsized public offering of $7.2 million on September 3, 2024.

How many shares were offered in BioCardia's (BCDA) recent public offering?

BioCardia (BCDA) offered 2,400,000 shares of common stock (or pre-funded warrants) and warrants to purchase up to 2,400,000 additional shares.

What was the pricing of BioCardia's (BCDA) public offering?

BioCardia's (BCDA) offering was priced at $3.00 per share and accompanying warrant, at-the-market under Nasdaq rules.

How does BioCardia (BCDA) plan to use the proceeds from its recent offering?

BioCardia (BCDA) intends to use the net proceeds for working capital, general corporate purposes, advancing investigational biotherapeutic candidates, and their biotherapeutic delivery partnering business.