Compass Therapeutics Announces $120M Stock Offering, Prices Shares at $3.00

Compass Therapeutics has priced a $120M underwritten public offering of 33.29M shares at $3.00 per share and pre-funded warrants to purchase up to 6.67M shares. The gross proceeds are expected to be approximately $120M, with the offering expected to close on [date]. Compass Therapeutics is a biotech company focused on developing novel immunotherapies for cancer and autoimmune diseases. The stock price has dipped 5% following the announcement.

Compass Therapeutics (NASDAQ: CMPX), a clinical-stage biopharmaceutical company specializing in oncology and autoimmune diseases, has successfully priced an underwritten public offering totaling $120 million. The offering consists of 33.29 million shares of common stock priced at $3.00 per share and pre-funded warrants to purchase up to 6.71 million shares at $2.9999 per warrant. The gross proceeds from the offering are expected to be approximately $120 million, with the offering expected to close on August 14, 2025, subject to customary closing conditions [1].

The underwriters, including prominent firms such as Jefferies, Piper Sandler, and Guggenheim Securities, have a 30-day option to purchase up to 6 million additional shares, which could potentially increase the proceeds by approximately $18 million if fully exercised. Compass Therapeutics plans to use the net proceeds for commercial readiness preparations, research and clinical development of its product candidates, and general corporate purposes [1].

The company's stock price dipped 5% following the announcement, indicating a mixed market reaction. While the offering provides Compass Therapeutics with a significant financial boost, investors should be aware of the potential dilution impact. The company has faced criticism for its high burn rate and the unproven clinical outcomes of its pipeline, particularly for its lead asset, tovecimig, which showed improved response rates in the BTC trial but still needs to demonstrate success in secondary endpoints [2].

In conclusion, Compass Therapeutics' $120 million equity raise is a strategic move aimed at advancing its bispecific antibody pipeline targeting solid tumors. The offering provides critical funding for key milestones and reduces near-term financing needs, but investors must weigh the potential value against dilution costs and the competitive landscape of immuno-oncology.

References:
[1] https://www.stocktitan.net/news/CMPX/compass-therapeutics-announces-pricing-of-upsized-120-million-public-ot29xmdk5yw4.html
[2] https://www.ainvest.com/news/compass-therapeutics-120m-equity-raise-strategic-move-pipeline-advancement-dilution-risk-2508/