Celsion Corporation (NASDAQ:CLSN)
Celsion Corporation (NASDAQ:CLSN) announced that it has entered into definitive agreements with several institutional investors to purchase an aggregate of approximately $5.4 million of shares of common stock, or pre-funded warrants in lieu thereof, in a registered direct offering. The market responded by punishing the shares, dropping almost 24%. CLSN shares ended yesterday at $3.20 but after the news of the share dilution hit the streets, sellers took over and CLSN closed the day at $2.44. Volumes were double their 30-day, daily averages.
Celsion Corporation (NASDAQ:CLSN) agreed to sell an aggregate of approximately 2 million shares of common stock, or pre-funded warrants in lieu thereof, at a price of $2.75 per common share or warrant share, respectively, in the registered direct offering. Additionally, the investors will receive, for each share of common stock or pre-funded warrant purchased in the registered direct offering, a Series AAA warrant to purchase one (1) share of common stock and a Series BBB warrant to purchase one (1) share of common stock. The Series AAA warrants have an exercise price of $2.75 per share, are initially exercisable six months following issuance, and terminate five and one-half years following issuance. The Series BBB warrants have an exercise price of $8.00 per share, are immediately exercisable, and terminate one year following issuance.
Celsion Corporation (NASDAQ:CLSN) is a fully integrated biopharmaceutical company focused on developing a portfolio of innovative cancer treatments, including directed chemotherapies, DNA-mediated immunotherapy, and RNA-based therapies. The company has a poor history with their shareholders. In 2012, shareholders experienced an EPS loss of (-$48.11). That was followed by losses of (-$13.29), (-$19.32), (-$14.42), and, in 2016, (-$11.90). Meanwhile, the number of shares outstanding has increased every year since 2012 when Celsion Corporation (NASDAQ:CLSN) reported 0.55 million shares. Unfortunately that number had steadily increased and by 2016 the number of outstanding shares was reported at 1.85 million.
Performance has not been attractive. Celsion Corporation (NASDAQ:CLSN) are down over 42% YTD, down over 65% for the past six months, and down over 86% for the year.
Despite the poor performance, two analysts rank Celsion Corporation (NASDAQ:CLSN) shares as a “Strong Buy” and one ranks CLSN shares as a “Hold”.
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.