Cibus, Inc., a San Diego-based agricultural biotechnology bellwether, has unveiled the pricing details of a significant $27.5 million public offering. The announcement teems with anticipative declarations regarding the offering’s closure and the strategic use of the funds raised, projecting an optimistic future for the company that hinges on a number of external factors.
With the completion of the offering relying heavily on favorable market conditions and customary closing conventions being met, investors are urged to tread carefully. Cibus’ management statements, although well-founded upon current data at the time of issuance, are liable to change as circumstances shift. This underlines the company’s commitment to transparency and adherence to legal requisites.
The public offering includes 15,714,285 shares of Class A Common Stock, priced at $1.75 per share. This offering, open to institutional and strategic investors, is also extended to the Chairman of Cibus’ board of directors who will acquire 5,714,286 shares. The shares in the offering will all be sold by Cibus, with the gross proceeds expected to reach approximately $27.5 million before deducting agent fees and various estimated offering expenses.
The funds amassed are slated to fuel the further development of the company’s innovative weed management productivity traits in rice, providing a significant boost to its working capital and general corporate purposes. This strategic move aligns with the company’s pursuit of long-term financing.
A.G.P./Alliance Global Partners have been appointed as the sole placement agent for the offering, which is being made under an effective shelf registration statement. The statement has been filed with the U.S. Securities and Exchange Commission and has been declared effective since October 2023.
Cibus, Inc. has made a name for itself as a leader in gene-edited productivity traits that address the exigent productivity and sustainability challenges that farmers face. These include diseases and pests, which according to the United Nations, cost the global economy an astronomical sum of approximately $300 billion annually.
The company’s long-term focus is on productivity traits for major, large-acreage row crops. However, Cibus is not a conventional seed company. It is a groundbreaking technology company that employs its proprietary high-throughput gene editing technology to develop crop traits at a fraction of the time and cost of traditional breeding. These traits are then licensed to seed companies in exchange for royalties on seed sales, promoting a sustainable and symbiotic business model.
This public offering represents a pivotal moment for Cibus and the agricultural biotechnology sector at large. As the industry continues to evolve and the demand for sustainable and efficient farming solutions grows, Cibus is positioning itself at the forefront of this revolution, armed with innovative technologies and a robust business strategy.
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