Cellectar Biosciences Inc (NASDAQ:CLRB) raised over $8 million in a recently held public offering that was fully underwritten. During the offering, the company came out with about 1.87 million shares and an additional 1.91 million pre-funded warrants.
Terms of Offering
All the Pre-funded warrants offered during the offering came with an exercise price of $0.01 a share. Series A warrants, on the other hand, boast an exercise price of $3.04 a share, which is exercisable for five years from the time of issue.
While trading on the NASDAQ market under the symbol CLRBZ, Series warrants A may be called back by under certain circumstances. Ladenburg Thalmann & Co Inc acted as the sole underwriter of the offering.
The company expects $7.2 million in net proceeds from the offering once all expenditures are deducted. Part of the proceeds will cater for costs on an ongoing advance phase 1 clinical trials of CLR 131 treatment in multiple myeloma.
Challenges Facing Cellectar Biosciences
The completion of the offering comes at a time when the biopharmaceutical company listing on the NASDAQ has been a point of discussion. Early this month the NASDAQ Capital Market issued a determination that allowed for the continued listing of the stock on the exchange.
However, the company continued listing depends heavily on its ability to maintain a minimum $2.5 million stockholder equity requirement. Cellectar Biosciences is also required to justify its ability to maintain compliance over a period of one year.
President and CEO, Jim Caruso, says they are working round the clock to meet the stipulated requirements.
Cellectar Biosciences Inc (NASDAQ:CLRB) has been a big disappointment over the past 12 months as it continues to trade at lows of $1.92 a share, way below its 52-week high of $38.89 a share. Total short interest as of the start of the month was 9,900 shares up by 20.73% from last month’s levels.