Celcuity Inc Announces $175M Convertible Notes and Common Stock Offering

Celcuity Inc (CELC) has priced a $175 million convertible notes offering and a common stock offering, raising approximately $248.7 million to support clinical trials and research and development. The convertible notes offer a 35% premium conversion price, reflecting investor confidence in the company's future growth. However, the lack of capped call transactions may introduce market volatility, and existing shareholders may experience potential dilution. The capital raised will be crucial for advancing oncology treatments.

Celcuity Inc. (NASDAQ: CELC) has priced a $175 million convertible notes offering and a common stock offering, raising approximately $248.7 million to support clinical trials and research and development. The convertible notes offer a 35% premium conversion price, reflecting investor confidence in the company's future growth. However, the lack of capped call transactions may introduce market volatility, and existing shareholders may experience potential dilution. The capital raised will be crucial for advancing oncology treatments.

The convertible notes, with an interest rate of 2.750% annually, are senior unsecured obligations due 2031 and will be convertible at an initial rate of 19.4932 shares per $1,000 principal amount, equivalent to a conversion price of approximately $51.30 per share [1]. The common stock offering consists of 1,836,842 shares at $38.00 per share. The company expects to use the proceeds for working capital and general corporate purposes, including clinical trial expenditures, commercial launch preparations, research and development, and business development activities.

Celcuity's lead candidate, gedatolisib, is currently in Phase 3 clinical trials for HR+/HER2- advanced breast cancer and Phase 1/2 trials for metastatic castration-resistant prostate cancer. The company's recent Phase 3 VIKTORIA-1 clinical trial results showed promising outcomes, with the triplet therapy of gedatolisib, palbociclib, and fulvestrant significantly reducing the risk of disease progression or death by 76% compared to fulvestrant alone [2]. These results have bolstered investor confidence and led to a surge in the company's stock price.

The convertible notes offering is expected to close on August 1, while the common stock offering should close on July 31, subject to customary closing conditions. Jefferies, TD Cowen, and Leerink Partners are serving as joint book-running managers for both offerings, with LifeSci Capital acting as lead manager for the convertible notes offering and passive bookrunner for the common stock offering [1].

References:
[1] https://au.investing.com/news/company-news/celcuity-prices-175-million-convertible-notes-85-million-stock-offering-93CH-3949155
[2] https://ng.investing.com/news/company-news/celcuity-announces-225-million-in-proposed-public-offerings-93CH-2029312