NEW YORK – Cargo Therapeutics on Friday priced an underwritten public offering of its common stock that it estimates will bring in $281.3 million in gross proceeds.
San Mateo-based Cargo will offer 18,750,000 shares of its common stock at $15.00 per share. The firm also granted underwriters a 30-day option to purchase an additional 2,812,500 shares of its common stock at the initial public offering price. JP Morgan, Jefferies, TD Cowen, and Truist Securities are bookrunning managers for the offering.
The firm's stock began trading on the Nasdaq Global Select Market under the ticker symbol "CRGX" today. Shares were up 2 percent at $15.30 in Friday afternoon trade.
The firm plans to use to proceeds to advance its next-generation cancer cell therapies, including the autologous CD22-directed agent CRG-022.
Cargo is currently studying CRG-022 in a Phase II clinical trial in large B-cell lymphoma patients whose cancers relapsed following CD19 CAR T-cell therapy. Cargo believes that CRG-022 has the potential to get around the limitations on currently available cell therapies, including issues with durability, supply, and safety.
Cargo said it will also evaluate CRG-022 as a treatment for earlier-stage LBCL patients and in blood cancers. Beyond CRG-022, the firm is developing a pipeline of cell therapies that it believes can avoid tumor resistance and T-cell exhaustion.
The firm expects the offering to close on Nov. 14.