Stock Markets February 20, 2026

Candel Therapeutics Stock Drops After $100 Million Share Sale Is Priced

Clinical-stage biotech prices 18.35 million-share offering; shares slide nearly 10% in premarket trading

By Hana Yamamoto CADL
Candel Therapeutics Stock Drops After $100 Million Share Sale Is Priced
CADL

Candel Therapeutics Inc. (NASDAQ: CADL) saw its stock fall 9.9% in premarket trading after announcing the pricing of a public offering of 18,348,624 shares at $5.45 apiece, expected to generate gross proceeds of $100 million before underwriting discounts and commissions. The company said proceeds will support commercial preparation for aglatimagene besadenovec in early, localized prostate cancer, fund a phase 3 trial in non-small cell lung cancer, and cover general corporate needs. The offering is expected to close around Feb. 23, 2026, and underwriters hold a 30-day option to buy up to 2,752,293 additional shares.

Key Points

  • Candel priced a public offering of 18,348,624 shares at $5.45 per share, aiming to raise about $100 million in gross proceeds.
  • Net proceeds are earmarked for commercial preparation of aglatimagene besadenovec in early, localized prostate cancer, funding the phase 3 trial in non-small cell lung cancer, and general corporate use.
  • The offering is expected to close on or about Feb. 23, 2026, and underwriters have a 30-day over-allotment option for up to 2,752,293 additional shares.

Market reaction and offering terms

Candel Therapeutics Inc (NASDAQ: CADL) experienced a 9.9% decline in premarket trading after the company priced a public offering of 18,348,624 shares at $5.45 per share. The clinical-stage biopharmaceutical firm stated the sale is expected to produce approximately $100 million in gross proceeds, before the deduction of underwriting discounts and commissions.

Closing schedule and over-allotment option

The company indicated the offering is anticipated to close on or about February 23, 2026, subject to customary closing conditions. In connection with the transaction, Candel has given the underwriters a 30-day option to purchase up to 2,752,293 additional shares at the public offering price, less the underwriting discount.

Intended use of proceeds

Candel said net proceeds from the offering will be directed toward completing launch readiness, medical affairs, pre-commercialization, and commercial activities for aglatimagene besadenovec in early, localized prostate cancer. The company also plans to apply funds to ongoing development costs for the phase 3 trial of aglatimagene in non-small cell lung cancer, as well as to general corporate purposes. The therapy is also referenced in company materials as CAN-2409 or aglatimagene.

Underwriting group

Citigroup, Cantor, and Stifel are named as joint bookrunning managers for the offering. LifeSci Capital is acting as lead manager, while H.C. Wainwright & Co. and Brookline Capital Markets, a division of Arcadia Securities, LLC, are serving as co-managers.

Context and implications

The announcement couples a defined timetable for closing with an underwriter over-allotment provision. The company framed the use of funds around both near-term commercial activities for aglatimagene besadenovec in early, localized prostate cancer and continued clinical investment for a phase 3 program in non-small cell lung cancer, in addition to general corporate needs.

Notable details

  • The offering size: 18,348,624 shares at $5.45 each.
  • Expected gross proceeds before fees: $100 million.
  • Anticipated close date: on or about February 23, 2026, subject to customary closing conditions.
  • Underwriters have a 30-day option for up to 2,752,293 additional shares at the offering price less underwriting discount.

All information above reflects the terms disclosed by the company in its offering announcement.

Risks

  • The offering is subject to customary closing conditions, so completion by the expected close date is not guaranteed - this affects the company, biotech sector financing activity, and capital markets participants.
  • The underwriters’ 30-day option to purchase additional shares could increase the number of shares sold and further dilute existing shareholders - impacting equity holders and market valuation.
  • Planned use of proceeds ties commercial preparation and phase 3 trial funding to successful completion of the offering; failure to secure these proceeds could affect those program timelines and corporate operations - relevant to healthcare and biotech investors.

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