Caribou Biosciences Inc. said it plans to fund ongoing drug studies with proceeds from an initial public offering, according to a Securities and Exchange Commission filing late Thursday.
The Berkeley, Calif.-based biotech drug company currently uses CRISPR gene editing techniques to develop cancer treatments, and plans to list under the ticker “CRBU” on the Nasdaq.
The company said it plans to raise up to $100 million but that figure is often used as a placeholder for subsequent filings. BofA Securities, Citigroup, and SVB Leerink are listed as the underwriters.
Caribou reported licensing and collaboration revenue of $12.4 million for a loss of $34.3 million in 2020, compared with $5.8 million in revenue for a loss of $23.4 million in 2019. Even with proceeds it hopes to raise through the IPO, the company said it will need more money to get its products regulatory approval.
“We expect the net proceeds from this offering, together with our existing cash and cash equivalents, will not be sufficient for us to advance any of our product candidates through regulatory approval, and we will need to raise additional capital to complete the development and potential commercialization of any of our product candidates,” the company said in its S-1 filing.
The company reported cash and cash equivalents of about $16 million at the end of 2020, down from $41.1 million at the end of 2019. Caribou has already raised $167.5 million since 2014 through five rounds of funding, according to Crunchbase data.