Molecular Templates Inc. (MTEM) stock on Wednesday saw its price falling in extended hours. After the ring of the bell on the day, the stock’s price declined by -9.62%, after remaining almost stable in the regular session with -0.37% to $13.62.
What does the company do?
Molecular Templates is a clinical-stage biopharmaceutical company and uncovering and developing targeted biologic therapeutics is the primary focus of the company. The company’s proprietary engineered toxin bodies (ETBs) are differentiated, targeted biotherapeutics for several kinds of serious illness, including cancer and other diseases. Shiga-like Toxin subunit can be activated by a genetic modification; therefore ETBs can produce potent and distinguishable therapies.
Launch of an underwritten public offering of shares of its common stock was announced on Wednesday by the company. A 30-day option will also be granted to the underwriters to buy up to an additional 15% of the shares of common stock on the same terms and conditions. Molecular will be selling all the shares in the offering.
Molecular intends to use the net proceeds from the offering, together with its existing cash and cash equivalents, for the following purposes:
- To conduct its Phase III clinical trials for MT-3724, or develop novel CD20-targeting therapeutics, and conduct MT-5111 Phase I clinical trials.
- To invest its share in the CD38 connection with Takeda to fund the development costs.
- For Phase 1 of PD-L1, as well as the MT6402 Phase I study that is currently under way.
- To develop preclinical materials and conduct drug discovery research in the other programs.
- For a working capital requirement and the general corporate purpose.
A range of market and other conditions will determine whether the offering could be completed, or whether its terms and dimensions will be adjusted for pricing, as said by the company in its statement.