Calidi Biotherapeutics Inc. (NYSE American: CLDI), a clinical-stage biotech company, has entered into a definitive agreement for the immediate cash exercise of outstanding warrants, raising approximately $4.6 million. This financial move involves the exercise of 6,595,000 shares of common stock at a reduced price of $0.70 per share. In return, Calidi will issue new unregistered warrants with the same share count, exercisable in six months at the same price and valid for five and a half years. Ladenburg Thalmann & Co. Inc. acted as the exclusive placement agent for this transaction.
The proceeds from this agreement are earmarked for supporting Calidi's clinical and pre-clinical programs, alongside general operations and working capital. This funding is crucial for the company's ongoing efforts to develop targeted therapies for genetic medicine delivery, particularly in the field of immuno-oncology. Calidi's proprietary technology focuses on arming the immune system to fight cancer, utilizing novel stem cell-based platforms to deliver oncolytic viruses for treating various oncology indications, including high-grade gliomas and solid tumors.
This financial boost underscores the importance of innovative funding mechanisms in advancing biotechnological research and development. For investors and the broader medical community, Calidi's progress represents a significant step forward in the quest for more effective cancer treatments. The company's approach to leveraging stem cells for delivering oncolytic viruses could potentially enhance treatment efficacy and patient safety, marking a promising avenue in cancer therapy research.
