ContraFect Corporation Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

ContraFect Corporation (Nasdaq: CFRX) announced a public offering of its common stock, with underwriters granted a 30-day option to purchase an additional 15%. The offering is subject to market conditions and the actual size is uncertain. The funds raised will primarily support the Phase 3 development of exebacase for treating Staph aureus bacteremia and other clinical trials. SVB Leerink and Cantor are acting as joint book running managers. This offering follows a previously effective shelf registration statement filed with the SEC.

Positive

• Funds from the offering will support critical clinical trials for exebacase and CF-370.
• Potential advancement in treating drug-resistant infections could enhance future revenues.

Negative

• The offering may dilute existing shareholder equity.
• Market conditions could affect the completion and terms of the offering.

YONKERS, N.Y., March 17, 2021 (GLOBE NEWSWIRE) -- ContraFect Corporation (Nasdaq: CFRX), a clinical-stage biotechnology company focused on discovering and developing direct lytic agents for the treatment of life-threatening infectious diseases, today announced that it has commenced an underwritten public offering of shares of its common stock. ContraFect expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock sold in the offering. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering. All shares in the offering are to be sold by ContraFect.

SVB Leerink and Cantor are acting as joint book running managers for the offering.

ContraFect intends to use the net proceeds of the offering to fund the completion of the exebacase Phase 3 development program for potential BLA submission for the treatment of Staph aureus bacteremia, including right-sided endocarditis, to fund a Phase 1/2 safety and efficacy trial for exebacase as a treatment for patients with chronic post-operative Staphylococcal prosthetic joint infections, to fund the acceleration of investigational new drug-enabling activities and a Phase 1a/1b trial of CF-370, an engineered gram-negative lysin directly targeting Pseudomonas aeruginosa, and for working capital and other general corporate purposes.

The offering is being made pursuant to an effective shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (SEC) on August 14, 2020 and declared effective on August 31, 2020. A preliminary prospectus supplement describing the terms of the public offering will be filed with the SEC and will form a part of the effective registration statement. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the public offering may be obtained, when available, by contacting SVB Leerink LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, Massachusetts 01220, by email at syndicate@svbleerink.com, or by telephone at (800) 808-7525, ext. 6105; or Cantor Fitzgerald & Co., Attn: Capital Markets, 499 Park Avenue, 6th floor, New York, NY 10022; Email: prospectus@cantor.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 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.

Forward-Looking Statements

This press release contains, and ContraFect’s officers and representatives may make from time to time, “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements can be identified by words such as “projects,” “may,” “will,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential,” “promise” or similar references to future periods. Examples of forward-looking statements in this release include, without limitation, statements regarding the consummation of the offering, the terms of the offering, the satisfaction of customary closing conditions with respect to the offering and the anticipated use of the net proceeds of the offering. Forward-looking statements are statements that are not historical facts, nor assurances of future performance. Instead, they are based on ContraFect’s current beliefs, expectations and assumptions regarding the future of its business, future plans, strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict and many of which are beyond ContraFect’s control, including those detailed in ContraFect's filings with the SEC. Actual results may differ from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include, among others, the uncertainties related to market conditions or for other reasons, the risk that the offering will not be consummated, and ContraFect’s ability to develop treatments for drug-resistant infectious diseases. Any forward-looking statement made by ContraFect in this press release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable law, ContraFect expressly disclaims any obligations to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Investor Relations Contact

Michael Messinger
ContraFect Corporation
Tel: 914-207-2300
Email: mmessinger@contrafect.com

Carlo Tanzi, Ph.D.
Kendall Investor Relations
Email: ctanzi@kendallir.com

FAQ

What is the purpose of ContraFect's public offering of CFRX stock?

The public offering aims to raise funds for the Phase 3 development of exebacase and other clinical trials.

Who are the underwriters for ContraFect's stock offering?

SVB Leerink and Cantor are the joint book running managers for the offering.

What are the risks associated with the CFRX stock offering?

Risks include potential dilution of existing shares and uncertainties related to market conditions affecting the offering's completion.

When was the registration statement for ContraFect's offering filed?

The effective registration statement was filed with the SEC on August 14, 2020.

What are the expected uses of funds from the CFRX stock offering?

The proceeds will be used for clinical trial funding, working capital, and general corporate purposes.