Calidi Biotherapeutics Shares Drop 35% Following Public Offering Announcement

Shares of Calidi Biotherapeutics Inc. (NYSE: CLDI) experienced a significant decline of 35.04% in after-hours trading on Thursday, falling to $0.50. This drop occurred after the San Diego-based biotech firm announced plans for an underwritten public offering shortly after the market closed.

The company intends to offer units of common stock or pre-funded warrants to select investors, with each unit also including common warrants. In its announcement, Calidi mentioned that it expects to provide underwriters with a 45-day overallotment option to purchase up to 15% additional shares. The offering is being managed by Ladenburg Thalmann & Co., which is acting as the sole book-running manager.

Calidi Biotherapeutics aims to utilize the proceeds from this offering for working capital and general corporate purposes. Given the firm’s current financial standing, the offering comes at a crucial time, especially as the company navigates the challenges typical of clinical-stage biopharmaceutical firms.

Stock Performance Overview

In terms of trading metrics, Calidi’s stock has shown a Relative Strength Index (RSI) of 38.68, indicating potential weakness in trading momentum. The company currently holds a market capitalization of $5.55 million. Over the past year, Calidi’s stock has seen a drastic decline of approximately 92.45%, with a 52-week range fluctuating between $0.72 and $19.20.

Before the after-hours trading, Calidi Biotherapeutics closed the regular session down 3.12% at $0.77, according to data from Benzinga Pro. This positions the stock alarmingly close to its 52-week low. Furthermore, Benzinga’s Edge Stock Rankings indicate that Calidi Biotherapeutics has a negative price trend across all time frames, emphasizing the challenging market conditions the company faces.

As the biotech firm moves forward with its public offering, investors and analysts alike will be closely monitoring its financial recovery and any subsequent impacts on its stock performance.