Cibus, Inc. Announces Proposed Public Offering of Class A Common Stock

Rhea-AI Summary

Cibus, Inc. (Nasdaq: CBUS), a leading agricultural biotechnology company, has announced a proposed public offering of its Class A common stock. The company plans to grant underwriters a 45-day option to purchase up to an additional 15% of the offered shares. Roth Capital Partners and A.G.P./Alliance Global Partners are acting as joint bookrunning managers for the offering. Cibus intends to use the net proceeds to fund the development of new seed traits, improve existing ones, support Trait Machine operations, and for working capital. The offering is subject to market conditions, and there is no guarantee of its completion or terms. Some existing investors and the CEO have shown interest in purchasing shares, but this is not binding.

Positive

• Potential to raise significant capital for business operations and growth
• Funds allocated for development of new and improvement of existing seed traits
• Investment in Trait Machine operations, potentially enhancing technological capabilities
• Interest from existing institutional investors and CEO in purchasing shares, showing confidence in the company

Negative

• Potential dilution of existing shareholders' equity
• Uncertainty regarding the offering's completion and final terms
• Market conditions may affect the success and pricing of the offering

Insights

Financial Analyst

Cibus' proposed public offering of Class A common stock is a significant move that could impact its financial position and growth prospects. The company aims to raise capital for trait development, operations and working capital, which could accelerate its R&D efforts and market penetration. However, this offering will likely lead to dilution for existing shareholders.

The involvement of institutional investors and the CEO in potentially purchasing shares is a positive signal, suggesting confidence in the company's future. Yet, it's important to note that these are non-binding commitments. The 45-day option for underwriters to purchase additional shares provides flexibility but could lead to further dilution if exercised.

Investors should closely monitor the pricing and size of the offering when announced, as these factors will determine the extent of dilution and the amount of capital raised. The market's reaction to this news will be telling of investor sentiment towards Cibus' growth strategy and valuation.

Agricultural Biotechnology Expert

Cibus' focus on gene editing technologies for plant trait development positions it at the forefront of agricultural innovation. The additional funding from this offering could significantly accelerate their R&D pipeline, potentially leading to breakthrough traits that address critical agricultural challenges such as crop yield, disease resistance, or climate adaptation.

However, the agricultural biotech sector faces regulatory hurdles and public perception challenges. Investors should consider how Cibus plans to navigate these issues and bring its traits to market. The company's success will depend on its ability to develop commercially viable traits and secure partnerships with major seed companies for distribution.

The emphasis on "Trait Machine operations" in the use of proceeds suggests a focus on scaling their proprietary technology platform. This could enhance Cibus' competitive edge but also requires substantial ongoing investment. The market will be watching for tangible progress in trait development and commercialization to justify this capital raise.

SAN DIEGO, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Cibus, Inc. (Nasdaq: CBUS), a leading agricultural biotechnology company that uses proprietary gene editing technologies to develop plant traits (or specific genetic characteristics) in seeds, today announced that it intends to offer shares of its Class A common stock in an underwritten public offering. Cibus also expects to grant to the underwriters of the offering a 45-day option to purchase up to an additional 15% of the shares of Class A common stock offered in the underwritten public offering on the same terms and conditions. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. Certain existing institutional and accredited investors and Rory Riggs, Cibus’ Chief Executive Officer, have indicated an interest in purchasing shares of Class A Common Stock in this offering. Because these indications of interest are not binding agreements or commitments to purchase, those certain existing investors and Mr. Riggs may elect not to purchase any shares in this offering, or the underwriters may elect not to sell any shares in this offering to those certain existing investors or Mr. Riggs.

Roth Capital Partners and A.G.P./Alliance Global Partners are acting as joint bookrunning managers for the offering.

Cibus intends to use the net proceeds from this offering to fund further development of new and improvement of existing seed traits, Trait Machine operations, and for working capital and general corporate purposes.

The securities will be offered pursuant to an effective shelf registration statement on Form S-3 (File No. 333-273062), including a base prospectus, filed with the Securities and Exchange Commission (the “SEC”) on June 30, 2023, and declared effective by the SEC on October 27, 2023. A preliminary prospectus supplement has been, or will be, filed with the SEC and, when available, copies of the preliminary prospectus supplement and accompanying base prospectus may be obtained from Roth Capital Partners, LLC, 888 San Clemente, Suite 400, Newport Beach, CA 92660, (800) 678-9147, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, by telephone at (212) 624-2060, or by email at prospectus@allianceg.com, or by accessing the SEC's website, www.sec.gov. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that Cibus has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about Cibus and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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.

About Cibus

Cibus is a leader in gene edited productivity traits that address critical productivity and sustainability challenges for farmers such as diseases and pests which the United Nations estimates cost the global economy approximately $300 billion annually. Cibus is not a seed company. It is a technology company that uses gene editing to develop and license traits to seed companies in exchange for royalties on seed sales. Cibus' focus is productivity traits for farmers for the major global row crops with large acreage such as canola, corn, rice, soybean, and wheat. Cibus is a technology leader in high throughput gene editing technology that enables Cibus to develop and commercialize plant traits at a fraction of the time and cost of conventional breeding. Cibus has developed a pipeline of five productivity traits including important traits for Pod Shatter Reduction, Sclerotinia (disease) resistance, and weed management. Its initial traits for Pod Shatter Reduction and weed management are in commercial development with leading seed companies. Its other pipeline traits including Sclerotinia resistance are in advanced greenhouse and field trial stages.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as "estimates," "expects," "intends," "may," "will," or the negative of these terms and other similar terminology. Forward-looking statements in this press release include, but are not limited to, statements regarding the anticipated offering and the expected use of the proceeds from the offering. Completion of the offering is subject to numerous factors, many of which are beyond Cibus’ control, including, without limitation, market conditions, failure to satisfy customary closing conditions and the risk factors and other matters set forth in the prospectus supplement and accompanying prospectus included in the registration statement and the documents incorporated by reference therein. You are cautioned not to place undue reliance on any forward-looking statements, which are based only on currently available information, and speak only as of the date, such statement is made. Cibus does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by law.

CIBUS CONTACTS:

INVESTOR RELATIONS
Karen Troeber
ktroeber@cibus.com
858-450-2636

Jeff Sonnek – ICR
jeff.sonnek@icrinc.com

MEDIA RELATIONS
media@cibus.com
(619) 849-6009

Colin Sanford
colin@bioscribe.com
203-918-4347

FAQ

What is the purpose of Cibus's (CBUS) proposed public offering?

Cibus (CBUS) intends to use the net proceeds from the offering to fund the development of new seed traits, improve existing ones, support Trait Machine operations, and for working capital and general corporate purposes.

Who are the underwriters for Cibus's (CBUS) public offering?

Roth Capital Partners and A.G.P./Alliance Global Partners are acting as joint bookrunning managers for Cibus's (CBUS) public offering.

Will Cibus (CBUS) grant additional options to underwriters in the offering?

Yes, Cibus (CBUS) expects to grant the underwriters a 45-day option to purchase up to an additional 15% of the shares offered in the public offering on the same terms and conditions.

Are any existing investors participating in Cibus's (CBUS) public offering?

Certain existing institutional and accredited investors, as well as Cibus's (CBUS) CEO Rory Riggs, have indicated interest in purchasing shares in the offering, but this is not a binding commitment.