Cibus Inc (NASDAQ:CBUS) saw its shares slide in early trading after the company announced the pricing of a new public offering that will increase the number of outstanding shares. In premarket activity on Thursday the stock was down 4.6%, reflecting investor concerns about dilution tied to the sale.
The offering consists of 13,333,333 shares of Class A Common Stock priced at $1.50 apiece. Before deducting underwriting discounts and commissions, the sale is expected to bring in approximately $20 million in gross proceeds to the company.
Company disclosures indicate that members of Cibus' Board of Directors have agreed to purchase 1,000,000 of the shares at the public offering price. The underwriter has also been granted a 30-day option to buy up to an additional 1,999,999 shares to cover any over-allotments. If that option is exercised in full, total gross proceeds could rise to about $23 million.
The transaction is expected to close on January 30, 2026, subject to customary closing conditions. BTIG, LLC is serving as the sole underwriter on the offering.
Cibus has stated that it intends to apply the net proceeds toward working capital and general corporate purposes. Specific uses called out by the company include further development of its weed management traits in Rice and payment of accrued professional expenses for advisory services.
The premarket decline in the stock price appears to be a direct market response to the anticipated dilution resulting from the newly issued shares. That reaction underscores investor sensitivity to capital raises that increase share counts while the funds are allocated to ongoing development and corporate expenses.
Summary
Cibus priced an underwritten offering of 13,333,333 Class A shares at $1.50 each to raise about $20 million, with board participation and a 30-day overallotment option that could increase proceeds to $23 million. The offering is scheduled to close on January 30, 2026, with BTIG, LLC as sole underwriter. Net proceeds are earmarked for working capital, advancing weed management traits in Rice, and settling accrued advisory expenses. The stock fell 4.6% in premarket trading following the announcement.
Key points
- Offering size and pricing: 13,333,333 Class A shares priced at $1.50 per share, expected to raise about $20 million before fees.
- Board participation and overallotment: Directors will buy 1,000,000 shares; underwriter has a 30-day option for up to 1,999,999 additional shares, potentially increasing gross proceeds to $23 million.
- Sectors affected: The financing impacts Cibus as an agricultural technology company and has implications for small-cap stocks and equity financing dynamics in the agritech and seed licensing space.
Risks and uncertainties
- Share dilution risk - The issuance of new shares will dilute existing shareholders, which the market reacted to with a 4.6% premarket decline.
- Financing completion uncertainty - The closing of the offering is subject to customary conditions and is expected to occur on January 30, 2026, so there is the usual execution risk until closing.
- Use of proceeds concentration - Net proceeds are being applied to working capital, development of Cibus' weed management traits in Rice, and accrued advisory expenses, concentrating the benefit of the raise on specific corporate and development activities.