Cullinan Therapeutics, Inc. (NASDAQ: CGEM) has successfully completed an oversubscribed $280 million private placement financing, with proceeds expected to extend the company's cash runway into 2028. The private placement involved the sale of approximately $274.0 million of common stock at a price of $19.00 per share and $6.0 million of pre-funded warrants to purchase shares of common stock. The company expects to receive gross proceeds of approximately $280.0 million from this offering.
Notably, the private placement saw participation from both new and existing leading life sciences institutional investors, including Adage Capital Partners LP, Avidity Partners, Blue Owl Healthcare Opportunities, Boxer Capital, Braidwell LP, BVF Partners L.P., Foresite Capital Management, an affiliate of Deerfield Management, Invus, OrbiMed, Paradigm Biocapital, Rock Springs Capital, RTW Investments, Surveyor Capital (a Citadel company), and Venrock Healthcare Capital Partners.
The financing is intended to support Cullinan’s ongoing research and development activities, as well as the expansion of its CD19xCD3 T cell engager clinical program for autoimmune diseases, in addition to general corporate purposes and working capital.
Morgan Stanley, TD Cowen, and Leerink Partners acted as lead placement agents for the private placement, with Stifel as a placement agent and Wedbush & Co., LLC, and BTIG as co-placement agents.
The company anticipates that the proceeds from the private placement, combined with its current cash, cash equivalents, short-term investments, and interest receivable, will fund its current operating plan into 2028.
It is important to note that the securities to be sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. Cullinan has agreed to file a registration statement with the United States Securities and Exchange Commission (SEC) registering the resale of the shares of common stock issued in the private placement and the shares of common stock issuable upon the exercise of the pre-funded warrants issued in the private placement, no later than 30 days after the closing of the private placement. Following these announcements, the company's shares moved 7.0%, and are now trading at a price of $17.71. If you want to know more, read the company's complete 8-K report here.
