Cartesian Therapeutics, Inc. (NASDAQ: RNAC) has announced a private investment in public equity ("PIPE") financing, which is expected to result in gross proceeds of approximately $130.0 million for the company. This financing, which is expected to close on or about July 3, 2024, includes the sale of 3,563,247 shares of its common stock and 2,937,903 shares of its Series B non-voting convertible preferred stock at a purchase price of $20.00 per share. The company has stated that it intends to use the net proceeds, alongside its existing cash, cash equivalents, and marketable securities, to fund its pipeline programs, as well as for general corporate purposes and working capital.
Participation in the PIPE financing came from both new and existing investors, including HBM Healthcare Investments (Cayman) Ltd., Invus, Schooner Capital, Surveyor Capital (a Citadel company), Timothy A. Springer, Ph.D., and other institutional investors. Notably, Leerink Partners and TD Cowen are acting as lead placement agents for the PIPE financing, with Needham & Company acting as a placement agent as well.
Cartesian Therapeutics is a clinical-stage biotechnology company pioneering mRNA cell therapy for autoimmune diseases. Its lead asset, Descartes-08, is a potential first-in-class mRNA CAR-T in phase 2b clinical development for patients with generalized myasthenia gravis and phase 2 development for systematic lupus erythematosus, with a phase 2 basket trial planned in additional autoimmune indications. The company’s clinical-stage pipeline also includes Descartes-15, a next-generation, autologous anti-BCMA mRNA CAR-T.
The offer and sale of these securities are being made in a transaction not involving a public offering, and the securities have not been registered under the Securities Act of 1933. Concurrently with the execution of the securities purchase agreement, the company and the investors entered into a registration rights agreement pursuant to which the company has agreed to file a registration statement with the Securities and Exchange Commission (SEC) registering the resale of the shares of common stock underlying the Series B preferred stock and the shares of common stock sold in the PIPE financing. Following these announcements, the company's shares moved -10.1%, and are now trading at a price of $24.27. For the full picture, make sure to review Cartesian Therapeutics's 8-K report.
