Celsion Corporation (NASDAQ:CLSN)
Celsion Corporation (NASDAQ:CLSN) shares fell 1.69% after initially rising by 8% in pre-market trading, after the company announced the publication of a manuscript for its Phase III HEAT study, assessing ThermoDox in hepatocellular carcinoma (HCC). The article details findings from a study of 701 patients as well as results from computer simulation studies.
ThermoDox is Celsion’s most advanced tumor-targeting drug delivery technology and employs a novel heat-sensitive liposome to address difficult-to-treat cancers. The program is currently in Phase III development for the treatment of primary liver cancer and in Phase II development for the treatment of recurrent chest wall breast cancer.
“We believe strongly that ThermoDox® may be an important new approach for the treatment of HCC. We are now fully committed to the OPTIMA Study and to learning more about how this combination therapy of standardized RFA plus ThermoDox® may significantly prolong the survival of, if not cure, patients,” said CEO Michael H. Trading.
Celsion Corporation (NASDAQ:CLSN)’s upside run, that began early in the month, is losing its momentum. The stock has struggled to close above the $6 a share on two attempts. Selling pressure appears to be slowly building. The stock has underperformed the industry for the better part of the year and the stock continues to trade at levels last seen in January.
The stock is currently rated as a ‘strong buy’ by two firms and as a ‘hold’ by one firm according to data compiled by Zack Investment Research.
Celsion’s New Financing
Separately, Celsion Corporation (NASDAQ:CLSN) has entered into Exercise agreements with holders of existing warrants issued in July. Pursuant to the agreement, the company has agreed to issue 2.4 million Series AAA Warrants at an exercise price of $2.07 a share and series BBB Warrants are an exercise price of $4.75 a share.
Celsion Corporation (NASDAQ:CLSN) expects gross proceeds of $15.6 million from the exercise of the Series AAA and Series BBB Warrants. Net proceeds are to be used for general corporate purposes. According to CEO, Michael Trading, the exercise agreements eliminate financial challenges that the company has faced in recent years. The executive also expects the new financing to help accelerate the development of drug candidates in the company’s pipeline.
“This significant capital infusion from the exercise of existing outstanding warrants at their original exercise prices is an example of our strategic approach to financing and is expected to extend the Company’s operating horizon through full patient enrollment of our Phase III OPTIMA Study,” said Mr. Tardugno.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.