Candel Therapeutics Prices $100M Equity Offering at $5.45, Shares Plunge
Candel Therapeutics priced an underwritten offering of 18.35 million shares at $5.45 each to raise about $100 million, closing around February 23. Shares plunged over 11% premarket to $5.27, trading 10.4% below their 20- and 50-day SMAs and near 52-week lows.
1. Equity Offering Details
Candel Therapeutics launched an underwritten public offering of 18.35 million shares at $5.45 per share, targeting approximately $100 million gross proceeds. The offering is expected to close on or about February 23, with underwriters exercising their option to purchase additional shares if needed.
2. Use of Proceeds
Net proceeds will support launch readiness for lead candidate aglatimagene besadenovec (CAN-2409) and fund ongoing development costs for the phase 3 non-small cell lung cancer trial. Management views this capital infusion as critical to advancing its viral immunotherapy pipeline toward commercial milestones.
3. Stock Performance and Technicals
Shares dropped 11.43% to $5.27 in premarket trading, reflecting dilution concerns and bearish sentiment. The stock sits 10.4% below its 20- and 50-day SMAs, with an RSI of 54.02 in neutral territory and a recent bullish MACD crossover, while key resistance and support lie at $5.50 and $5.00 respectively.
4. Analyst Ratings
The consensus outlook remains positive with an average price target of $15.77 and a buy rating. Stephens & Co. maintains an Overweight rating with a $15 target, and Citigroup holds a Buy rating with a $24 target, reflecting confidence in long-term pipeline value despite near-term dilution.