$8 Million Private Placement Announcement Sends Biotech Flying

Yolowire 30-Apr-2024 1:09 PM

Usually when a publicly traded company announces some sort of equity offering, it can be viewed as a dilutive event, thus having a negative effect on the company’s price per share. Every now and then, however, a company will raise what seems to be the perfect amount of capital relative to their needs, and for the right reasons. This typically results in traders getting excited about the prospects the company faces following this new capital injection.

The latter is exactly what happened today after %CyclacelPharmaceuticals (NASDAQ:CYCC) announced that it had entered into definitive agreements surrounding a $8.0 million private placement priced at-the-market under Nasdaq rules. Traders couldn’t get their hands on shares of this New Jersey-based micro cap quickly enough as they pushed the share price up to $2.29/share (+68.38%) at the early session high.

Cyclacel Pharmaceuticals Inc is a clinical-stage biopharmaceutical company which develops targeted medicines for cancer and other proliferative diseases. It develops several families of anticancer drugs that act on the cell cycle, including nucleoside analogs, CDK (cyclin dependent kinase) inhibitors, and PLK (polo-like kinase) inhibitors. The pipeline development programs of the company include CYC065 CDK inhibitor, Sapacitabine and seliciclib, CYC682, CYC140 PLK inhibitor, and CYC202. It earns the majority of its revenue from the United Kingdom.