Here’s Why Cascadian Therapeutics Inc (USA) (CASC) Shares Tumble 11%
Cascadian Therapeutics Inc (USA) (NASDAQ:CASC) announced that it intends to offer and sell shares of its common stock and Series E convertible preferred stock in concurrent but separate underwritten public offerings. The Series E convertible preferred stock is non-voting and convertible into shares of Cascadian Therapeutics common stock, provided that conversion will be prohibited if, as a result, the holder and its affiliates would beneficially own more than 19.99% of the common stock then outstanding. As part of the common stock offering, Cascadian Therapeutics also expects to grant the underwriters a 30-day option to purchase additional shares of its common stock. The offerings are being conducted as separate public offerings by means of separate prospectus supplements, and neither offering is contingent upon the consummation of the other.
Cascadian Therapeutics plans to use the net proceeds from these offerings to fund the tucatinib HER2CLIMB pivotal trial, to support the development of tucatinib in other indications through company or investigator-sponsored trials, as well as for working capital and other general corporate purposes. The offerings are subject to market conditions and there can be no assurance as to whether or when the offerings may be completed, or as to the actual size or terms of the offerings.
The public offering would dilute shareholders’ investments, and as such Cascadian shares are currently dropping nearly 11% to $3.25 in after-hours trading. CASC has a 1-year high of $10.98 and a 1-year low of $3.62. The stock’s 50-day moving average is $4.93 and its 200-day moving average is $2.19.
On the ratings front, CASC has been the subject of a number of recent research reports. In a report issued on December 7, Cowen analyst Boris Peaker reiterated a Buy rating on CASC. Separately, on November 7, Jefferies’ Gena Wang reiterated a Buy rating on the stock and has a price target of $3.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Boris Peaker and Gena Wang have a yearly average loss of -1.0% and -10.3% respectively. Peaker has a success rate of 36% and is ranked #3475 out of 4361 analysts, while Wang has a success rate of 30% and is ranked #4195.
Cascadian Therapeutics, Inc. is a clinical-stage biopharmaceutical company, engages in the development of therapeutic products for the treatment of cancer. Its lead product candidate ONT-380, is an orally active and selective small-molecule HER2 inhibitor. It also develops preclinical product candidates in oncology using Chk1 kinase inhibitor and protocell technology.