Catabasis Pharmaceuticals Inc. (NASDAQ: CATB) was up 8% in extended hours on Monday thanks to an SEC filing. CATB stock’s year to date performance is 63.55%. A look at its 7-day chart indicates that it has dropped by -3.85% in the last seven days but is up 43.44% in the past month.
The Nasdaq Composite Index ended Monday at new record levels, with the stock market continuing to move higher. There have been major gains in some Nasdaq stocks that have recently been making noise. Tesla and NVIDIA were the stars of the day with big gains. Catabasis Pharmaceuticals Inc. (NASDAQ: CATB) may not be as well known to investors as some of its peers, but the biotech stock has been performing well this year and continues to rise. Here are the things they’re doing to keep the momentum going.
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Perceptive Advisors reportedly filed a 13D filing for Catabasis Pharma (CATB) displaying a new 10.5% stake in the company.
The company’s share price climbed higher a week ago after announcing the acquisition of Quellis Biosciences. Quellis Biosciences’ acquisition by Catabasis Pharma was on a stock-for-stock basis. This consists of it trading all remaining equity interests in the company in exchange for shares of CATB stock and Series X Preferred Stock.
Catabasis Pharma noted that it had started a private investment in public equity at the same time as it acquired Quellis Biosciences. It will be offering new and existing investors shares of a new Series X Preferred Stock. Catabasis Pharma says it will secure an investment of $110 million from the PIPE. Series X Preferred Stock is valued at $3,093.These shares can be converted into 1,000 CATB shares, which would be purchased at a $3.09 price per share.
The company says it will use funds received from the PIPE for studying the potential of QLS-215 in treating hereditary angioedema and obtaining its IND-enabling label. Catabasis Pharma says that this will grant them a total of $150 million in cash proceeds. This will enable them to stay in business until 2023, they say.
Quellis Biosciences is a privately-held biopharmaceutical company founded in 2017. Its focus is on developing new medicines for serious diseases that have been neglected for decades.