Celsion Corporation (NASDAQ:CLSN)
Celsion Corporation (NASDAQ:CLSN) shares dropped nearly 20% after the biotechnology firm announced the pricing of an underwritten offering of 2,640,000 shares of its common stock and warrants. The offering prices 1.32 million CLSN shares at $2.50 and each share is is being sold together with 0.50 warrants, with each whole warrant exercisable to purchase one whole share of common stock. The warrants have an exercise price of $3.00 per share, are not exercisable until six months after issuance and will terminate 5 years from the time each warrant is first exercisable. Celsion expects to raise $6.6 million before expenses and fees are deducted.
The announcement sent the shares gapping lower to open at $2.30 after closing on Thursday at $2.86. Twice during October CLSN stock had made runs to the $6 handle before retreating. Prior to Friday, the shares had experienced over ten trading days of consecutive losses.
Lawrenceville, NJ-based Celsion Corporation (NASDAQ:CLSN) is an oncology drug company that develops and commercializes directed chemotherapy, DNA-mediated immunotherapy, and RNA based therapy products for the treatment of cancer. The company’s lead product includes ThermoDox, a liposomal encapsulation of doxorubicin that is in Phase III clinical trials for primary liver cancer; and under Phase II clinical trials for recurrent chest wall breast cancer. It is also developing GEN-1, a DNA-based immunotherapeutic product for the localized treatment of ovarian and brain cancers.
CLSN Stock Performance
On October 4, 2017 Maxim Group upgraded their rating on CLSN shares from a “Hold” to a “Buy” with a $7 price target. Two other investment firms have previously rated CLSN stock as a “Strong Buy”. The one-year consensus price target is $8.
However, shares of the biotech have not performed. Year-to-date shares are down over 45% and are down over 84% for the year. In the short-term shareholders have seen a bounce from the August-September trading range under $2 and their monthly performance is a positive 50% over the past month.
Celsion Corporation (NASDAQ:CLSN) has a consistent history of issuing shares and diluting shareholder equity. In 2012, there were 550,000 shares outstanding and that number has grown each year. In 2016 there were 1.85 million CLSN shares outstanding. Earnings have been just as frustrating for shareholders. Per share losses have been reported every year since 2012 and for 2016 the loss was (-$11.90) per share.
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: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.