CalciMedica Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

CalciMedica (Nasdaq: CALC) has announced the pricing of an underwritten public offering of 2,720,000 shares of common stock at $3.75 per share. The company expects to raise gross proceeds of $10,200,000 before deducting underwriting costs and expenses. CalciMedica has granted underwriters a 30-day option to purchase up to an additional 408,000 shares at the public offering price. The offering is expected to close around November 1, 2024. Jones is serving as the sole book-running manager for this offering, which is being conducted under a shelf registration statement previously declared effective by the SEC.

Positive

• Expected gross proceeds of $10.2 million to strengthen company's capital position

Negative

• Potential dilution of existing shareholders through issuance of 2.72 million new shares
• Additional dilution possible if underwriters exercise option for 408,000 shares

Insights

Financial Analyst

This $10.2 million public offering at $3.75 per share represents significant dilution for existing shareholders, pricing well below the recent trading range. With a market cap of $51.6 million, this offering represents approximately 20% dilution. While the capital raise strengthens the balance sheet to support clinical development programs, the pricing suggests challenging market conditions and investor appetite. The additional 15% option for underwriters to purchase shares could further increase dilution. The timing and pricing of this offering may indicate near-term capital needs, which is common for clinical-stage biotech companies but warrants careful monitoring of cash burn rate and clinical milestone progress.

LA JOLLA, Calif., Oct. 30, 2024 /PRNewswire/ -- CalciMedica, Inc. ("CalciMedica" or the "Company") (Nasdaq: CALC), a clinical-stage biopharmaceutical company focused on developing novel calcium release-activated calcium ("CRAC") channel inhibition therapies for acute and chronic inflammatory and immunologic illnesses, today announced the pricing of an underwritten public offering of 2,720,000 shares of its common stock at a price to the public of $3.75 per share. The gross proceeds to the Company from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be $10,200,000. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 408,000 shares of its common stock at the public offering price, less underwriting discounts and commissions. All of the shares are to be sold by the Company. The offering is expected to close on or about November 1, 2024, subject to satisfaction of customary closing conditions.

Jones is acting as the sole book-running manager for the offering.

The underwritten public offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-273949) (including a base prospectus) previously filed with the Securities and Exchange Commission (the "SEC") on August 11, 2023 and declared effective by the SEC on August 18, 2023. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the underwritten public offering were filed with the SEC on October 30, 2024. A final prospectus supplement relating to the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. When available, electronic copies of the final prospectus supplement and the accompanying prospectus relating to the underwritten public offering may also be obtained by contacting: JonesTrading Institutional Services LLC, Attention: Equity Capital Markets, 325 Hudson Street, 6th Floor New York, New York 10013; email: ecm@jonestrading.com.

This press release does 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 the registration or qualification under the securities laws of any such state or jurisdiction.

About CalciMedica
CalciMedica is a clinical-stage biopharmaceutical company focused on developing novel CRAC channel inhibition therapies for inflammatory and immunologic diseases. CalciMedica's proprietary technology targets the inhibition of CRAC channels to modulate the immune response and protect against tissue cell injury, with the potential to provide therapeutic benefits in life-threatening inflammatory and immunologic diseases for which there are currently no approved therapies. CalciMedica's lead product candidate Auxora™ has demonstrated positive and consistent clinical results in multiple completed efficacy clinical trials. CalciMedica has announced data for a Phase 2b trial (called CARPO – NCT04681066) in patients with AP with SIRS and completed a Phase 2 trial (called CARDEA – NCT04345614) in patients with COVID pneumonia. The Company is currently conducting a Phase 2 trial (called KOURAGE – NCT06374797) in patients with AKI with associated AHRF with data expected in 2025 and continuing to support the ongoing Phase 1/2 trial (called CRSPA – NCT04195347) in patients with AIPT with data expected in 2025. CalciMedica was founded by scientists from Torrey Pines Therapeutics and the Harvard CBR Institute for Biomedical Research, and is headquartered in La Jolla, CA. 

Forward-Looking Statements
Any statements in this press release about future expectations, plans and prospects for CalciMedica, including statements about the timing and completion of the underwritten public offering, and other statements containing the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: CalciMedica's inability, or the inability of the underwriter, to satisfy the conditions to closing for the underwritten public offering; and economic, business, competitive, and/or regulatory factors affecting the business of CalciMedica generally. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption "Risk Factors" in CalciMedica's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 filed with the SEC on August 12, 2024 and other filings CalciMedica makes with the SEC from time to time and available at www.sec.gov. All forward-looking statements contained in this press release speak only as of the date on which they were made. CalciMedica undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

CalciMedica Contact:
Investors and Media
Argot Partners
Sarah Sutton/Kevin Murphy
calcimedica@argotpartners.com
(212) 600-1902

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SOURCE CalciMedica, Inc.

FAQ

What is the price per share for CalciMedica's (CALC) October 2024 public offering?

CalciMedica (CALC) priced its public offering at $3.75 per share.

How many shares is CalciMedica (CALC) offering in its October 2024 public offering?

CalciMedica is offering 2,720,000 shares of common stock, with an option for underwriters to purchase an additional 408,000 shares.

What are the expected gross proceeds from CalciMedica's (CALC) October 2024 offering?

The expected gross proceeds from the offering are $10,200,000, before deducting underwriting discounts and other expenses.

When is CalciMedica's (CALC) October 2024 public offering expected to close?

The offering is expected to close on or about November 1, 2024, subject to customary closing conditions.