Cidara Therapeutics, Inc. (CDTX) stock is declining today: Here’s Why

Cidara Therapeutics, Inc. (CDTX) stock was declining today following the announcement of a public offering of common stock. CDTX stock price saw a downtrend of 8.29% to drop at $1.72 a share at the time of this writing. The stock was gloomy in the previous trade and went down by 1.58% at closing. Let’s deep dive to explore more of it.

What’s Happening?

Cidara Therapeutics today announced that it has started a concurrent but separate underwritten public offering of its Series X Convertible Preferred Stock and its common stock. Furthermore, CDTX stock is expecting to grant a 30-day option to underwriters in order to buy additional shares of its common stock at a public offering price. The closing of one offering is not dependent on the closing of the other proposed offering. There is no fixed completion date of offerings as market conditions will define when to close the offerings.

CDTX stock announced inducement grants

On October 1, 2021, Cidara stock did announce the stock option awards and restricted stock units for 169,000 shares of its common stock to ten new employees. The stock announced the inducement grants after getting approval from the compensation committee of its board of directors. The exercise price of each of the stock options was $2.24 per share. The vesting period is four years and 25% of shares subject to the options will vest on the first anniversary of the applicable vesting initiation date.

Appointments by Cidara stock:

Cidara stock at the start of September 2021 announced that it had appointed Preetam Shah, Ph.D., MBA as chief financial officer and chief business officer. Furthermore, CDTX also announced the appointment of Shane Ward as chief legal officer and corporate secretary.

Financial View of CDTX stock:

According to second-quarter 2021 financial results, Cidara stock generated $32.9 million in the three months ended June 30, 2021. This compares to $3.4 million in the same tenure of the previous year. Net income for CDTX stock was $10.7 million as compared to an $18.3 million net loss in the same tenure of the previous year. CDTX stock spent $4.4 million and $17.7 million in general and administrative expenses and research and development expenses respectively in the second quarter of 2021.

Wrap Up:

The announcement of a public offering by Cidara Therapeutics has added more pain to the decreasing per share price of the CDTX stock. It would be interesting to see how this stock will behave after the closing of the offering. In a nutshell, it is necessary to analyze company fundamentals before making any decision.