Candel Therapeutics Announces Closing of Public Offering and Full Exercise of the Underwriters' Option to Purchase Additional Shares

Rhea-AI Summary

Candel Therapeutics (NASDAQ: CADL) has successfully closed its public offering, selling 12,000,001 shares of common stock at $6.00 per share and 3,333,333 pre-funded warrants at $5.99 per warrant. The offering includes 2,000,000 additional shares from the full exercise of the underwriters' option. The company raised approximately $92 million in gross proceeds before deducting expenses.

The funds will be used to advance product development, including the preparation of a Biologics License Application for CAN-2409 in prostate cancer, and for general corporate purposes. The offering was managed by Citigroup, BofA Securities, and Canaccord Genuity as joint bookrunners, with H.C. Wainwright & Co. as lead manager.

Positive

• Successful raise of $92 million in gross proceeds
• Full exercise of underwriters' option indicating strong demand
• Funds secured for BLA submission of CAN-2409 in prostate cancer

Negative

• Potential dilution for existing shareholders due to 12 million new shares
• Additional potential dilution from 3.3 million pre-funded warrants

Insights

Financial Analyst

The successful completion of this $92 million public offering significantly strengthens Candel's financial position. The full exercise of the underwriters' option demonstrates strong institutional interest and confidence in the company's pipeline. With $6.00 per share pricing and the inclusion of pre-funded warrants at $5.99, the structure provides immediate capital while maintaining flexibility for future appreciation. The proceeds will critically support the BLA submission for CAN-2409 in prostate cancer, potentially accelerating the path to commercialization. This capital raise extends the company's runway and reduces near-term financing risks, though dilution impact on existing shareholders should be noted with the addition of 15.3 million new shares and warrants.

Medical Research Analyst

The substantial capital injection positions Candel to advance its multimodal biological immunotherapy pipeline, particularly CAN-2409 for prostate cancer. The preparation for BLA submission represents a critical regulatory milestone that could potentially bring a new immunotherapy option to prostate cancer patients. The strong financial backing from this offering enables comprehensive development efforts and potentially accelerates the timeline to market. The involvement of major underwriters like Citigroup and BofA Securities adds credibility to Candel's clinical development strategy and potential commercial prospects in the competitive oncology space.

NEEDHAM, Mass., Dec. 16, 2024 (GLOBE NEWSWIRE) -- Candel Therapeutics, Inc. (“Candel”) (Nasdaq: CADL), a clinical stage biopharmaceutical company focused on developing multimodal biological immunotherapies to help patients fight cancer, today announced the closing of its previously announced underwritten public offering of 12,000,001 shares of its common stock at a price to the public of $6.00 per share and pre-funded warrants to purchase up to an aggregate of 3,333,333 shares of its common stock at a price to the public of $5.99 per pre-funded warrant to purchase one share of the common stock, which represents the per share public offering price for the common stock less the $0.01 per share exercise price for each such pre-funded warrant. The 12,000,001 shares of common stock sold in the offering include 2,000,000 shares sold pursuant to the full exercise of the underwriters’ option to purchase up to 2,000,000 additional shares of common stock at the public offering price, less the underwriting discount.

The gross proceeds from the offering to Candel are approximately $92 million, before deducting underwriting discounts and commissions and other offering expenses. Candel intends to use the net proceeds from the offering to continue the development of its product candidates, including preparing submission of a Biologics License Application for CAN-2409 in prostate cancer and for general corporate purposes.

Citigroup, BofA Securities and Canaccord Genuity acted as joint bookrunning managers for the offering. H.C. Wainwright & Co. acted as lead manager for the offering.

A shelf registration statement relating to the shares of common stock offered in the public offering described above was filed with the Securities and Exchange Commission (the “SEC”) on August 5, 2022 and declared effective by the SEC on August 12, 2022. The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A final prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus may also be obtained by contacting Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or telephone: 1-800-831-9146; BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, email: dg.prospectus_requests@bofa.com; or Canaccord Genuity LLC, Attention: Syndication Department, 1 Post Office Square, 30th Floor, Boston, MA 02109, or by email at prospectus@cgf.com.

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

About Candel Therapeutics

Candel is a clinical stage biopharmaceutical company focused on developing off-the-shelf multimodal biological immunotherapies that elicit an individualized, systemic anti-tumor immune response to help patients fight cancer. Candel has established two clinical stage multimodal biological immunotherapy platforms based on novel, genetically modified adenovirus and herpes simplex virus (HSV) gene constructs, respectively. CAN-2409 is the lead product candidate from the adenovirus platform and is currently in ongoing clinical trials in non-small cell lung cancer (NSCLC) (phase 2) and borderline resectable pancreatic ductal adenocarcinoma (PDAC) (phase 2), and recently completed phase 2b and phase 3 clinical trials in localized, non-metastatic prostate cancer. CAN-3110 is the lead product candidate from the HSV platform and is currently in an ongoing phase 1b clinical trial in recurrent high-grade glioma (rHGG). Finally, Candel’s enLIGHTEN™ Discovery Platform is a systematic, iterative HSV-based discovery platform leveraging human biology and advanced analytics to create new viral immunotherapies for solid tumors.

Forward-Looking Statements

Various statements in this release concerning the use of proceeds from the public offering constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, as amended, and other federal securities laws. All such forward-looking statements are based on management’s current expectations of future events and are subject to a number of substantial risks and uncertainties, many of which are outside Candel’s control, that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include fluctuations in Candel’s stock price and changes in market conditions, as well as those risks more fully discussed in the section entitled “Risk Factors” in the prospectus supplement and registration statement referenced above, Candel’s Annual Report on Form 10-K for the year ended December 31, 2023, filed on March 28, 2024 with the SEC and subsequent filings with the SEC including Candel’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and Candel undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

Investor Contact:
Theodore Jenkins
VP, Investor Relations and Business Development
Candel Therapeutics, Inc.
tjenkins@candeltx.com

Media Contact:
Ben Shannon
Vice President
ICR Healthcare
CandelPR@icrhealthcare.com

FAQ

How much did Candel Therapeutics (CADL) raise in its December 2024 public offering?

Candel Therapeutics raised approximately $92 million in gross proceeds before deducting underwriting discounts and commissions and other offering expenses.

What was the price per share for CADL's December 2024 public offering?

The public offering price was $6.00 per share of common stock and $5.99 per pre-funded warrant.

How many shares and warrants were issued in CADL's December 2024 offering?

Candel issued 12,000,001 shares of common stock and pre-funded warrants to purchase 3,333,333 shares.

What will CADL use the proceeds from the December 2024 offering for?

The proceeds will be used to continue product development, prepare a Biologics License Application for CAN-2409 in prostate cancer, and for general corporate purposes.

Did the underwriters exercise their option in CADL's December 2024 offering?

Yes, the underwriters fully exercised their option to purchase an additional 2,000,000 shares at the public offering price.