CBAY - Why CymaBay Therapeutics Stock Popped Again Today
2023-09-11 18:31:59 ET
For the third day in a row, shares of CymaBay Therapeutics (NASDAQ: CBAY) enjoyed a very healthy gain in price. That came on the announcement of a capital-raising effort by the company. Ultimately, CymaBay stock closed Monday more than 5% higher; by comparison, the S&P 500 index managed only a 0.7% increase.
Monday morning, CymaBay announced that it had floated a $150 million issue of common stock and warrants. The clinical-stage biotech said it intends to grant the offering's underwriting syndicate, led by BTIG, a 30-day option to purchase an additional 15% of the amount of shares in the issue. These shares include stock that undergirds the pre-funded warrants.
CymaBay said that the funds raised will be channeled into the development of its investigational drug seladelpar , which targets a rare chronic inflammatory liver affliction called primary biliary cholangitis (PBC). The monies will be used for clinical trials, the company's working capital, and "general corporate purposes."
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Why CymaBay Therapeutics Stock Popped Again Today