Candel Therapeutics Announces Pricing of Public Offering

Rhea-AI Summary

Candel Therapeutics (CADL) has announced the pricing of a public offering, consisting of 10,000,001 shares of common stock at $6.00 per share and pre-funded warrants to purchase 3,333,333 shares at $5.99 per warrant. The offering is expected to generate approximately $80 million in gross proceeds and close around December 16, 2024. The company has granted underwriters a 30-day option to purchase up to 2,000,000 additional shares. Proceeds will fund product development, including preparation for a Biologics License Application for CAN-2409 in prostate cancer, and general corporate purposes. The offering is led by joint bookrunning managers Citigroup, BofA Securities, and Canaccord Genuity.

Positive

• Expected to raise $80 million in gross proceeds
• Funds will support BLA submission for CAN-2409 in prostate cancer
• Strong underwriting support from major financial institutions

Negative

• Significant shareholder dilution through issuance of 10M new shares
• Additional potential dilution from 3.33M pre-funded warrants
• Further dilution possible through 2M share underwriter option

Insights

Financial Analyst

This $80 million public offering represents a significant capital raise for Candel Therapeutics, priced at $6.00 per share for 10,000,001 shares and $5.99 for pre-funded warrants covering 3,333,333 shares. The pricing and structure suggest strong institutional interest, with major banks like Citigroup and BofA Securities as joint bookrunners. The funds will primarily support their BLA submission for CAN-2409 in prostate cancer, strengthening their financial position for this important regulatory milestone. The additional 30-day option for 2,000,000 shares provides flexibility for increased capital if market conditions are favorable. This financing bolsters their balance sheet and extends their operational runway, though it will result in dilution for existing shareholders.

Medical Research Analyst

The capital raise is strategically timed to support Candel's advancement of CAN-2409 toward a Biologics License Application (BLA) in prostate cancer. This immunotherapy candidate represents a significant opportunity in the large prostate cancer market. The substantial funding will help ensure adequate resources for regulatory submission and potential commercialization preparations. The strong backing from major investment banks suggests confidence in both the clinical data and market potential of their multimodal biological immunotherapy platform. This financing could accelerate their development timeline and strengthen their position in the competitive oncology landscape.

NEEDHAM, Mass., Dec. 12, 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 pricing of an underwritten public offering of 10,000,001 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 gross proceeds from the offering to Candel are expected to be approximately $80 million, before deducting underwriting discounts and commissions and other offering expenses. The offering is expected to close on or about December 16, 2024, subject to customary closing conditions. In addition, Candel has granted the underwriters a 30-day option to purchase up to 2,000,000 additional shares of common stock at the public offering price, less the underwriting discount.

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 are acting as joint bookrunning managers for the offering. H.C. Wainwright & Co. is acting 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 preliminary 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. A final prospectus supplement and accompanying prospectus will be filed with the SEC. When available, 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 timing and completion of the public offering on the anticipated terms or at all may 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, changes in market conditions and satisfaction of customary closing conditions related to the public offering, 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. There can be no assurance that Candel will be able to complete the public offering on the anticipated terms. 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

What is the size and price of Candel Therapeutics' (CADL) December 2024 public offering?

Candel Therapeutics is offering 10,000,001 shares at $6.00 per share and 3,333,333 pre-funded warrants at $5.99 per warrant, expecting to raise approximately $80 million in gross proceeds.

How will CADL use the proceeds from its December 2024 public offering?

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

When is CADL's December 2024 public offering expected to close?

The offering is expected to close on or about December 16, 2024, subject to customary closing conditions.

What additional options were granted to underwriters in CADL's December 2024 offering?

Candel granted underwriters a 30-day option to purchase up to 2,000,000 additional shares at the public offering price, less the underwriting discount.

Who are the bookrunning managers for CADL's December 2024 public offering?

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