Cidara Therapeutics Announces Commencement of Rights Offering

Cidara Therapeutics (NASDAQ:CDTX) commenced the previously announced rights offering to raise gross proceeds of approximately US$30 million.

As quoted in the press release:

Under the terms of the Rights Offering, the holders, as of 5:00 p.m., New York time, on January 21, 2020, of Cidara’s common stock and Series X convertible preferred stock, and Cidara’s warrants issued on May 21, 2018, are entitled to purchase up to 11,952,191 shares of common stock in the aggregate at a subscription price equal to $2.51 per share, or under certain circumstances, shares of non-voting Series X convertible preferred stock in lieu of common stock (collectively, the “Offered Shares”), as more fully described in the prospectus supplement, dated January 22, 2020, relating to the Rights Offering.

The Rights Offering will be fully backstopped by BVF Partners L.P. and Stonepine Capital, LP, each of which has agreed to purchase at a minimum, its respective as-converted pro rata share of the offering amount, plus an additional amount of securities that are not subscribed for by other purchasers in the Rights Offering, for a total of up to $30.0 million. Cidara expects to use the proceeds from the Rights Offering for working capital and other general corporate purposes.

Click here to read the full press release.