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

Rhea-AI Summary

BioCardia (Nasdaq: BCDA), a leader in cardiovascular and pulmonary disease therapeutics, has announced the pricing of an upsized $7.2 million public offering. The offering includes 2,400,000 shares of common stock (or pre-funded warrants) and warrants to purchase up to 2,400,000 shares at $3.00 per share and accompanying warrant. The warrants have a 5-year expiration and are immediately exercisable. The offering, priced at-the-market under Nasdaq rules, is expected to close on September 3, 2024. Proceeds will be used for working capital and advancing BioCardia's biotherapeutic candidates and delivery partnering business. A.G.P./Alliance Global Partners is the sole placement agent for this offering.

Positive

• Upsized offering to $7.2 million, indicating strong investor interest
• Participation from management, directors, and institutional investors
• Immediate cash infusion to support working capital and advance biotherapeutic candidates
• Warrants provide potential for additional future funding if exercised

Negative

• Potential dilution of existing shareholders' ownership
• Offering priced at-the-market, not at a premium
• Additional shares and warrants may put downward pressure on stock price

Insights

Financial Analyst

BioCardia's $7.2 million public offering is a significant move to bolster its financial position. The at-the-market pricing of $3.00 per share suggests current market sentiment. The inclusion of warrants with a 5-year expiration provides potential for future capital influx. Notably, management participation signals confidence in the company's prospects. However, the dilutive effect on existing shareholders is a concern. The immediate exercisability of warrants could lead to short-term price pressure. Overall, while this offering strengthens BioCardia's cash position, investors should closely monitor how effectively the company utilizes these funds to advance its biotherapeutic pipeline and delivery partnerships.

Biotech Industry Expert

This capital raise is important for BioCardia's advancement in the cellular and cell-derived therapeutics space. The focus on cardiovascular and pulmonary diseases positions the company in high-need areas with significant market potential. The allocation of funds towards investigational biotherapeutic candidates and delivery partnering business suggests a dual strategy of internal development and collaborative efforts. This approach could potentially accelerate product development while diversifying risk. However, investors should note that the biotech sector often requires substantial ongoing investment before reaching profitability. The success of this strategy will heavily depend on upcoming clinical trial results and the ability to secure strategic partnerships in the competitive biotherapeutics landscape.

Market Strategist

The timing of BioCardia's offering, amidst volatile market conditions, is noteworthy. The upsized offering from its original plans indicates strong investor interest, which is a positive signal. The participation of institutional investors and existing shareholders suggests confidence in the company's long-term prospects. However, the need for additional funding could imply cash burn concerns. The at-the-market pricing minimizes discount-related dilution but may indicate pricing power. The warrant structure provides a sweetener for investors but could create overhang on the stock price. Investors should watch for post-offering stock performance and any upcoming catalysts that could justify this capital raise. The company's ability to translate this funding into tangible progress in its pipeline will be important for maintaining investor confidence.

SUNNYVALE, Calif., Aug. 30, 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 pricing 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 expects to receive aggregate gross proceeds of $7.2 million, before deducting placement agent fees and other offering expenses. The warrants will 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 is expected to occur on September 3, 2024, subject to the satisfaction of customary closing conditions. 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.

A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.

The securities described above are being offered 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 is being made only by means of a prospectus forming part of the effective registration statements. Copies of the preliminary prospectus and, when available, copies of the final prospectus, relating to the offering may be obtained on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus relating to the offering may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.

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 Company’s offering of securities and the use of proceeds from such offering. 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 is the size and price of BioCardia's (BCDA) public offering?

BioCardia's public offering is sized at $7.2 million, with 2,400,000 shares (or pre-funded warrants) and warrants priced at $3.00 per share and accompanying warrant.

When is the expected closing date for BioCardia's (BCDA) public offering?

The expected closing date for BioCardia's public offering is September 3, 2024, subject to customary closing conditions.

How will BioCardia (BCDA) use the proceeds from this offering?

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

What are the terms of the warrants in BioCardia's (BCDA) public offering?

The warrants have an exercise price of $3.00 per share, are immediately exercisable, and will expire five years from the issuance date.