Calithera Biosciences, Inc. Prices $10.0 Million Underwritten Public Offering of Common Stock and Warrants to Purchase Common Stock

Rhea-AI Summary

Calithera Biosciences (CALA) priced its public offering of 18,518,519 shares at $0.54 each, raising approximately $10 million before expenses. Each share includes two types of warrants, one expiring in 18 months and the other in five years, both with an exercise price of $0.54. The offering, set to close on April 1, 2022, is managed by SVB Leerink and H.C. Wainwright & Co. These funds will be pivotal for ongoing clinical trials and business operations as the company continues its focus on oncology therapeutics.

Positive

• Gross proceeds of approximately $10 million for operational and trial support.
• Warrants attached to shares may enhance future capital.
• The offering's immediate closure on April 1, 2022, provides quick liquidity.

Negative

• Potential shareholder dilution due to the issuance of new shares.
• The low offering price of $0.54 may signal a lack of confidence in current valuations.

SOUTH SAN FRANCISCO, Calif., March 30, 2022 (GLOBE NEWSWIRE) -- Calithera Biosciences, Inc. (Nasdaq: CALA), a clinical-stage, precision oncology biopharmaceutical company, today announced the pricing of its previously announced underwritten public offering of 18,518,519 shares of its common stock at a price to the public of $0.54 per share. Each share of common stock is accompanied by a warrant to purchase one share of common stock at an exercise price of $0.54 per share, which is immediately exercisable and will expire 18 months from the date of issuance, or a short-term warrant, and a warrant to purchase one share of common stock at an exercise price of $0.54 per share, which is immediately exercisable and will expire 5 years from the date of issuance, or a long-term warrant. The gross proceeds to Calithera from the offering are expected to be approximately $10.0 million, before deducting underwriting discounts and commissions and estimated offering expenses. All of the shares of common stock and warrants are being offered by Calithera. The offering is expected to close on April 1, 2022, subject to customary closing conditions.

SVB Leerink and H.C. Wainwright & Co. are acting as joint book-running managers for the offering.

A shelf registration statement relating to the offered securities was filed with the Securities and Exchange Commission (SEC), and was declared effective. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s website, located at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus related to the offering may be obtained, when available, from SVB Securities LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, Massachusetts 02109, by telephone at 1-800-808-7525, ext. 6105 or by email at syndicate@svbleerink.com, or from H.C. Wainwright & Co., LLC, 430 Park Avenue, 3rd Floor, New York, NY 10022, Attention: Placement, by telephone at 212-856-5711 or by email at placements@hcwco.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities 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.

CONTACTS: Stephanie Wong Chief Financial Officer 650.870.1063 ir@Calithera.com INVESTORS: Burns McClellan Lee Roth 212.213.0006 lroth@burnsmc.com

FAQ

What is the pricing of Calithera's public offering?

Calithera's public offering is priced at $0.54 per share.

How many shares were offered in Calithera's public offering?

A total of 18,518,519 shares were offered.

What are the expected proceeds from Calithera's offering?

Calithera expects to raise approximately $10 million before expenses.

When will Calithera's public offering close?

The offering is expected to close on April 1, 2022.

What type of warrants are included with Calithera's share offering?

The offering includes both short-term and long-term warrants, both priced at $0.54.