Cibus Inc. Announces Partial Exercise of Underwriters' Option, Additional Shares Purchased
In a recent development, Cibus Inc., an agriculture chemicals company, has revealed that the representatives of the underwriters, Roth Capital Partners and A.G.P./Alliance Global Partners, have exercised their option to purchase an additional 289,953 shares of Cibus's Class A common stock at a price of $4.00 per share. This exercise is part of a 45-day option granted to the underwriters during Cibus's public offering of 3,000,000 shares.
The partial exercise of the option by the underwriters brings in additional capital for the company, following the public offering that was made pursuant to a prospectus supplement and related prospectus filed with the Securities and Exchange Commission (SEC). The prospectus supplement related to the offering was filed with the SEC on September 19, 2024, under the company's shelf registration statement on Form S-3.
Cibus Inc., previously known as Calyxt Inc., is incorporated in Delaware and has its executive offices located in San Diego, California. The company's Class A common stock is traded on The Nasdaq Stock Market LLC under the ticker symbol NASDAQ:CBUS. The legal opinion regarding the validity of the newly issued shares was provided by Jones Day, which is also included as an exhibit in the SEC filing.
In other recent news, Cibus has announced a public offering to raise $12 million for seed trait development and general corporate purposes. Despite changes in personnel, the company continues to make strategic moves to enter new markets and form partnerships.
InvestingPro Insights:
InvestingPro provides real-time data on Cibus Inc.'s financial health, revealing that the company's market capitalization of $102.58 million is trading at a significant discount to the InvestingPro Fair Value estimate of $6.07. Despite impressive revenue growth, analysts remain cautious due to rapid cash burn and lack of profitability. The stock's volatility is also noteworthy, with recent declines in price.
InvestingPro Tips highlight Cibus's moderate level of debt and lack of dividend payments, making it more appealing to growth-focused investors. Understanding the risks and potential rewards associated with the stock is crucial for investors. More insights and guidance are available at Investing.com/pro/CBUS.
Analysis:
Cibus Inc.'s recent public offering and the exercise of the underwriters' option indicate a positive outlook for the company. While there are risks associated with rapid cash burn and lack of profitability, growth-focused investors may find potential upside in the stock. It is important for investors to conduct their own research and seek advice from financial advisors before making investment decisions.