Calidi Biotherapeutics Secures $4.6 Million Through Warrant Exercise to Advance Cancer Therapy Programs

Calidi Biotherapeutics Inc. (NYSE American: CLDI), a clinical-stage biotechnology company, has entered into a definitive agreement for the immediate cash exercise of outstanding warrants, resulting in approximately $4.6 million in gross proceeds. The transaction involves 6,595,000 shares of common stock at a reduced price of $0.70 per share. In return, Calidi will issue new unregistered warrants with the same share count, exercisable in six months at $0.70 and valid for five and a half years. Ladenburg Thalmann & Co. Inc. is acting as the exclusive placement agent for this transaction.

The net proceeds from this warrant exercise are earmarked for supporting Calidi's clinical and pre-clinical programs, operations, and working capital. This financial boost is crucial for the company as it continues to develop its proprietary stem cell-based platforms designed to enhance the delivery of oncolytic viruses for treating various oncology indications, including high-grade gliomas and solid tumors. Calidi's innovative approach aims to improve the efficacy and safety of cancer treatments, potentially offering new hope to patients with metastatic disease.

The significance of this funding extends beyond immediate financial stability, as it enables Calidi to advance its research into stem cell-mediated delivery systems that could overcome current limitations in oncolytic virotherapy. By protecting therapeutic viruses from immune system neutralization and targeting them directly to tumor sites, this technology represents a potential breakthrough in cancer treatment. The company's focus on difficult-to-treat cancers like glioblastoma multiforme addresses a critical unmet medical need where conventional therapies often fail.

This transaction demonstrates investor confidence in Calidi's scientific approach at a time when biotech funding remains challenging. The structure of the agreement, with new warrants issued at the same exercise price, provides future capital flexibility while minimizing immediate dilution. As the company progresses its programs through clinical development, this funding supports essential research activities that could lead to improved outcomes for cancer patients. Additional information about this development is available at https://ibn.fm/duWdz.

The implications of this financial milestone are substantial for the oncology field, as successful development of Calidi's platforms could transform how oncolytic viruses are delivered to tumors. Current challenges with systemic administration and immune system interference have limited the clinical application of these promising therapies. By leveraging stem cells as protective carriers, Calidi's technology may enable more effective tumor targeting while reducing off-target effects, potentially expanding the therapeutic window for oncolytic virotherapy across multiple cancer types.