Capricor Therapeutics Announces Closing of Underwritten Public Offering and Full Exercise of the Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Capricor Therapeutics (NASDAQ: CAPR), a biotechnology company focused on rare disease treatments, has closed its underwritten public offering of 5,073,800 common stock shares. This includes the full exercise of the underwriters' over-allotment option. The offering generated gross proceeds of approximately $86.3 million before deducting underwriting commissions and other expenses. Piper Sandler & Co. and Oppenheimer & Co. Inc. served as joint book-running managers for the offering, which closed on October 18, 2024.

The company plans to use the net proceeds for continued product candidate development, manufacturing, working capital, and general corporate purposes. The securities were offered under an effective shelf registration statement, with a final prospectus supplement filed on October 17, 2024.

Positive

• Successful closing of public offering with full exercise of over-allotment option
• Raised approximately $86.3 million in gross proceeds
• Funds to be used for product development, manufacturing, and working capital

Negative

• Potential dilution of existing shareholders' equity due to new share issuance

Insights

Financial Analyst

The closing of Capricor Therapeutics' public offering marks a significant financial milestone for the company. With $86.3 million in gross proceeds, this capital injection substantially bolsters CAPR's financial position. For a company with a market cap of around $680 million, this represents a considerable 12.7% increase in available capital.

The full exercise of the underwriters' over-allotment option indicates strong investor demand, which is a positive signal for market confidence in CAPR's potential. The involvement of reputable underwriters like Piper Sandler and Oppenheimer adds credibility to the offering.

Investors should note the company's intended use of proceeds, focusing on product development and manufacturing. This suggests a push towards advancing their pipeline, which could accelerate their path to market and potential revenue generation. However, the dilutive effect of issuing 5,073,800 new shares should be considered in the context of long-term value creation versus short-term earnings per share impact.

Overall, this successful offering strengthens CAPR's balance sheet and provides runway for key operational objectives, potentially de-risking some near-term financial concerns for investors.

SAN DIEGO, Oct. 18, 2024 (GLOBE NEWSWIRE) -- Capricor Therapeutics (NASDAQ: CAPR), a biotechnology company developing transformative cell and exosome-based therapeutics for the treatment of rare diseases, announced today the closing of its previously announced underwritten public offering of 5,073,800 shares of its common stock, including the exercise in full of the underwriters’ option to purchase additional shares to cover over allotments, bringing the total gross proceeds to Capricor from the offering to approximately $86.3 million, before deducting underwriting commissions and other offering expenses payable by Capricor. All of the shares of common stock sold in the offering, including the over-allotment, were offered by Capricor. The closing of the offering occurred on October 18, 2024.

Piper Sandler & Co. and Oppenheimer & Co. Inc. acted as the joint book-running managers for the offering.

The Company intends to use the net proceeds from this offering on the continued development of its product candidates, manufacturing of its product candidates, working capital and general corporate purposes.

The securities were offered by the Company pursuant to an effective shelf registration statement on Form S-3 (File No. 333-280229) that was originally filed with the Securities and Exchange Commission (“SEC”) on June 14, 2024 and declared effective on October 16, 2024. The offering was made only by means of a prospectus and related prospectus supplement. A preliminary prospectus supplement relating to the offering was filed with the SEC on October 16, 2024. The final prospectus supplement relating to and describing the terms of the offering was filed with the SEC on October 17, 2024 and is available on the SEC's website at www.sec.gov. Electronic copies of the prospectus supplement and the accompanying prospectus may also be obtained from Piper Sandler & Co. at 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, Attention: Prospectus and Oppenheimer & Co. Inc. at Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities 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 Capricor Therapeutics

Capricor Therapeutics, Inc. (NASDAQ: CAPR) is a biotechnology company dedicated to advancing transformative cell and exosome-based therapeutics to redefine the treatment landscape for rare diseases. At the forefront of our innovation is our lead product candidate, deramiocel (CAP-1002), an allogeneic cardiac-derived cell therapy. Extensive preclinical and clinical studies have shown deramiocel to demonstrate immunomodulatory, antifibrotic, and regenerative actions specifically tailored for dystrophinopathies and heart disease. Deramiocel is currently advancing through Phase 3 clinical development for the treatment of Duchenne muscular dystrophy. Capricor is also harnessing the power of its exosome technology, using its proprietary StealthX™ platform in preclinical development focused on the areas of vaccinology, targeted delivery of oligonucleotides, proteins and small molecule therapeutics to potentially treat and prevent a diverse array of diseases. At Capricor, we stand committed to pushing the boundaries of possibility and forging a path toward transformative treatments for those in need. For more information, visit capricor.com, and follow Capricor on Facebook, Instagram and Twitter.

Cautionary Note Regarding Forward-Looking Statements

Statements in this press release regarding the efficacy, safety, and intended utilization of Capricor’s product candidates; the initiation, conduct, size, timing and results of discovery efforts and clinical trials; the pace of enrollment of clinical trials; plans regarding regulatory filings, future research and clinical trials; regulatory developments involving products, including the ability to obtain regulatory approvals or otherwise bring products to market; manufacturing capabilities; dates for regulatory meetings; statements about our financial outlook; the ability to achieve product milestones and to receive milestone payments from commercial partners; plans regarding current and future collaborative activities and the ownership of commercial rights; potential future agreements; scope, duration, validity and enforceability of intellectual property rights; future revenue streams and projections; expectations with respect to the expected use of proceeds from the recently completed offerings and the anticipated effects of the offerings; and any other statements about Capricor’s management team’s future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “could,” “anticipates,” “expects,” “estimates,” “should,” “target,” “will,” “would” and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements. More information about these and other risks that may impact Capricor’s business is set forth in Capricor’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission on March 11, 2024, and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on August 8, 2024. All forward-looking statements in this press release are based on information available to Capricor as of the date hereof, and Capricor assumes no obligation to update these forward-looking statements.

Capricor has entered into an agreement for the exclusive commercialization and distribution of deramiocel (CAP-1002) for DMD in the United States and Japan with Nippon Shinyaku Co., Ltd. (U.S. subsidiary: NS Pharma, Inc.), subject to regulatory approval. Deramiocel is an Investigational New Drug and is not approved for any indications. None of Capricor’s exosome-based candidates have been approved for clinical investigation.

For more information, please contact:

Capricor Media Contact:
Raquel Cona
KCSA Strategic Communications
rcona@kcsa.com
212.896.1204

Capricor Company Contact:
AJ Bergmann, Chief Financial Officer
abergmann@capricor.com
858.727.1755

FAQ

How much did Capricor Therapeutics (CAPR) raise in its public offering?

Capricor Therapeutics raised approximately $86.3 million in gross proceeds from its public offering, including the full exercise of the underwriters' over-allotment option.

When did Capricor Therapeutics (CAPR) close its public offering?

Capricor Therapeutics closed its public offering on October 18, 2024.

How many shares did Capricor Therapeutics (CAPR) sell in its public offering?

Capricor Therapeutics sold 5,073,800 shares of its common stock in the public offering, including the full exercise of the underwriters' over-allotment option.

What will Capricor Therapeutics (CAPR) use the proceeds from the offering for?

Capricor Therapeutics intends to use the net proceeds for continued development of its product candidates, manufacturing, working capital, and general corporate purposes.