Capricor Therapeutics Shares Decline 41% After Direct Offering Agreement

Capricor Therapeutics saw a significant drop in its shares, with a decline of 41% to $3.44, following the company's decision to enter into definitive agreements with commercial partner Nippon Shinyaku and funds associated with Highbridge Capital Management. The agreements pertain to the issuance and sale of 4.9 million shares in a registered direct offering. Each share in the offering includes a warrant to purchase one additional share at an exercise price of $5.70 per share.

Warrant Details and Expiration

The warrants included in the offering will become exercisable six months after issuance and will remain valid for a period of seven years from the date of issuance. The combined offering price per share, including the accompanying warrant, is $4.66.

Timing and Expected Proceeds

The closing of the offering is expected to take place on or around Tuesday. Capricor Therapeutics anticipates generating proceeds of $23 million through this offering. The company intends to allocate these funds towards research and development activities related to its product candidates, manufacturing operations, working capital, and other general corporate purposes.

Positive Meeting with FDA

In another development earlier on Friday, Capricor Therapeutics disclosed that it had a positive type-B meeting with the Food and Drug Administration (FDA). The purpose of the meeting was to discuss the pathway for submitting a biologics license application for CAP-1002, a therapy currently in late-stage clinical development for the treatment of Duchenne muscular dystrophy.