Corbus Pharmaceuticals Announces Proposed Public Offering
- None.
- 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.
Insights
The announcement by Corbus Pharmaceuticals of a public offering represents a strategic move to raise capital, signaling to investors that the company is seeking to bolster its financial position. The decision to offer common stock or pre-funded warrants provides flexibility in attracting a range of investors. The use of net proceeds for clinical development indicates an aggressive investment in the company's pipeline, which could lead to significant advancements in its precision oncology portfolio.
However, the dilutive effect of such offerings must be considered, as it can lead to a decrease in existing shareholders' value. The market's reception to this news will likely be contingent on investor confidence in Corbus's growth prospects and the current valuation of its stock. The underwriters' option to purchase an additional 15% could provide a safety net for the offering, potentially stabilizing the stock price post-offering.
Corbus Pharmaceuticals' entry into a public offering is indicative of broader industry trends where biotech firms often rely on public markets to fund research and development. The context of market conditions mentioned in the announcement is crucial, as it reflects the volatility and uncertainty inherent in the biotech sector.
Investor sentiment towards the precision oncology space is generally positive, given the high demand for targeted cancer therapies. However, the success of the offering will hinge on the market's perception of Corbus's potential to deliver on its clinical promises. A review of similar past offerings and their outcomes could provide a comparative benchmark for evaluating the potential success of this offering.
Corbus Pharmaceuticals' compliance with SEC regulations, as evidenced by the effective registration statement, is a critical legal step in the process of a public offering. The absence of state blue sky law qualification for the securities adds a layer of complexity, as it restricts the offering to certain jurisdictions. The legal language surrounding the offering's terms and the need for a prospectus highlights the importance of transparency and due diligence in such financial transactions.
Investors will need to scrutinize the preliminary prospectus supplement and the accompanying base prospectus for a comprehensive understanding of the offering's terms and risks. This level of disclosure is not only a legal requirement but also a determinant of investor trust and confidence in the company's governance practices.
NORWOOD, Mass., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Corbus Pharmaceuticals Holdings, Inc. (Nasdaq: CRBP) (“Corbus” or the “Company”), a precision oncology company with a diversified portfolio, today announced that it plans to offer and sell shares of its common stock or, in lieu of common stock to certain investors, pre-funded warrants to purchase shares of its common stock in an underwritten registered public offering. All of the securities in the offering are to be sold by Corbus. 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.
Corbus intends to use the net proceeds of the proposed underwritten offering to fund the clinical development of its pipeline and for working capital and other general corporate purposes.
Jefferies is acting as sole book-running manager for the offering. Corbus intends to grant the underwriters a 30-day option to purchase up to an additional
A registration statement relating to these securities has been filed with the Securities and Exchange Commission (“SEC”) and became effective on June 13, 2023. A preliminary prospectus supplement and accompanying base prospectus relating to and describing the terms of the offering will be filed with the SEC. The securities described above have not been qualified under any state blue sky laws. 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. The offering will be made only by means of a prospectus, copies of which may be obtained, when available, at the SEC’s website at www.sec.gov, or by request at Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com.
About Corbus
Corbus Pharmaceuticals Holdings, Inc. is a precision oncology company with a diversified portfolio and is committed to helping people defeat serious illness by bringing innovative scientific approaches to well understood biological pathways. Corbus’ pipeline includes CRB-701, a next generation antibody drug conjugate that targets the expression of Nectin-4 on cancer cells to release a cytotoxic payload, CRB-601, an anti-integrin monoclonal antibody which blocks the activation of TGFβ expressed on cancer cells, and CRB-913, a highly peripherally restricted CB1 inverse agonist for the treatment of obesity. Corbus is headquartered in Norwood, Massachusetts.
Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements about Corbus’ expectations regarding the completion, timing and size of its public offering and the anticipated use of proceeds therefrom. Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “may,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements necessarily contain these identifying words. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the offering, as well as risks and uncertainties associated with Corbus’ business and finances in general, including the risks and uncertainties in the section captioned “Risk Factors” in the preliminary prospectus supplement related to the public offering that will be filed with the SEC and the Company’s most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. There can be no assurances that we will be able to complete the proposed offering on the anticipated terms, or at all. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Corbus undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
Corbus Pharmaceuticals Contacts:
Sean Moran
Chief Financial Officer
Corbus Pharmaceuticals
smoran@corbuspharma.com
Bruce Mackle
Managing Director
LifeSci Advisors, LLC
bmackle@lifesciadvisors.com
FAQ
What is Corbus Pharmaceuticals Holdings, Inc. planning to offer and sell?
What is the purpose of the underwritten offering?
Who is acting as the sole book-running manager for the offering?
Has the registration statement relating to these securities been filed with the SEC?
How can copies of the prospectus be obtained?
