News to Watch: Cidara Therapeutics (NASDAQ:CDTX)

Cidara Therapeutics (NASDAQ:CDTX) spotted trading -12.06% off 52-week high price. On the other end, the stock has been noted 186.30% away from the low price over the last 52-weeks. The stock changed -7.89% to recent value of $3.5. The stock transacted 662003 shares during most recent day however it has an average volume of 202.57K shares. The company has 32.86M of outstanding shares and 26.77M shares were floated in the market.

On Jan. 10, 2020, Cidara Therapeutics (NASDAQ:CDTX) disclosed its intent to raise $30.0 million through a fully backstopped rights offering. Under the terms of the rights offering, investors as of January 21, 2020 in Cidara’s common stock and preferred stock, as well as the holders of Cidara’s warrants issued on May 21, 2018, will receive a subscription right entitling them to purchase their pro rata share of the $30.0 million offering amount. The rights offering will be fully backstopped by BVF Partners L.P. and Stonepine Capital, LP, each of which have agreed to purchase, at a minimum, its respective as-converted pro rata share of the offering amount, plus an additional amount of securities that are not subscribed for by other purchasers in the rights offering, for a total of up to $30.0 million.

Under the proposed rights offering (the Rights Offering), Cidara plans to distribute non-transferable subscription rights to purchase a portion of a share of Cidara’s common stock (Common Stock) for each outstanding share of Common Stock, Common Stock issuable upon conversion of the outstanding shares of Cidara’s Series X convertible preferred stock (Series X Preferred), and Common Stock issuable upon the exercise of Common Stock Purchase Warrants issued by Cidara on May 21, 2018 (Warrants), at $2.51 per share, which is a 15% discount to the 30-day volume weighted average price of Cidara’s common stock, to such security holders of record as of the close of business on January 21, 2020 (the Record Date). The subscription rights will be exercisable for an aggregate of up to 11,952,191 shares of Common Stock and up to 1,195,219 shares of Series X Preferred, with participation to be allocated among holders of its Common Stock, Series X Preferred and Warrants on a pro rata basis (assuming full conversion of the Series X Preferred into shares of Common Stock and the full exercise of the Warrants into shares of Common Stock), subject to the aggregate offering threshold and ownership limitations. The subscription rights may be exercised only during the anticipated subscription period of Wednesday, January 22, 2020, through 5:00 PM (New York time) on Monday, February 10, 2020, unless extended. Any participant in the Rights Offering that, by exercise of its subscription right would become a holder of greater than 9.99% of the outstanding number of shares of Common Stock following the Rights Offering may elect to instead purchase Series X Preferred. Cidara intends to sell the Series X Preferred at $25.10 per share, and any such holder so electing would have a right to purchase one one-tenth of a share of Series X Preferred for each share of Common Stock it had a right to purchase under the subscription rights. Each share of Series X Preferred are, subject to certain limitations, convertible into 10 shares of Common Stock at the election of the holder. The Series X Preferred generally have no voting rights, except as required by law, and will participate pari passu, on an as-converted basis, with any distribution of proceeds to holders of Common Stock in the event of Cidara’s liquidation, dissolution or winding up.

Its earnings per share (EPS) expected to touch remained 13.40% for this year.

According to the most recent quarter its current ratio was 2.5 that represents company’s ability to meet its current financial obligations. The price moved ahead of 16.18% from the mean of 20 days, 33.76% from mean of 50 days SMA and performed 68.88% from mean of 200 days price. Company’s performance for the week was 2.04%, 30.11% for month and YTD performance remained -8.85%.

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