Celsion Withdrawing From Stock Offering and Shares Rise Over 50%, Here’s What You Need to Know

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Celsion Corporation (NASDAQ:CLSN) shares were up over 50% today, after the company filed a request to withdraw registration statement on Form S-1. That said, this was the primary catalyst that sent this stock higher today, in addition to the stock regaining NASDAQ compliance two days ago. Let’s get right into the catalyst that sent CLSN higher today.

Celsion Files Registration Withdrawal Request

On June 16, 2017, Celsion requested that the Securities and Exchange Commission (SEC) approve the withdrawal of the company’s registration statement on Form S-1 with all amendments and exhibits. That said, Celsion Corporation noted that it submitted this request since it does not intend to pursue the offering for the time being.

Prior to this registration withdrawal request, Celsion was looking to offer $8.07M worth of common stock; $37,500 of base warrants to purchase shares of common stock; $2.24M of pre-funded warrants to purchase; $10.35M of shares of common stock issuable upon the exercise of the base warrants; and $450K of warrants issued to the underwriter and common stock issuable upon exercise. That said, the company intended to offer $21.15M in securities, while the company had a market cap of $8.344M, as of June 15, 2017.

Consequently, if the company did issue the offering, it would have diluted the stock, and potentially causing it to sell off. However, the stock did the exact opposite, once it withdrew its registration statement on Form S-1. That in mind, Celsion’s common stock would not get diluted, for now, removing some overhang for investors.

What You Need to Know About Celsion Corporation

  • Celsion Corporation shares ended the day up over 50% today, after the company announced it filed a request to withdraw its registration statement on SEC Form S-1.
  • CLSN shares were down nearly 50% over the past three months and nearly 90% over the past year, as of June 15, 2017.

Check out Celsion Corporation on the daily chart below:

Celsion

Source: TradingView

  • Celsion currently has 4.07M shares outstanding, 3.93M shares floating and 490K shares short, as of May 31, 2017. That in mind, the stock has a short percentage of float of 12.39% and a short ratio, or days to cover, of 4.70.
  • The company has been operating at a loss, and therefore, its trailing 12-month price-to-earnings ratio is null, while the industry average is 64.5.
  • CLSN had a price-to-book ratio of 1.4, while the biotechnology industry average was 6.1.
  • Celsion had a trailing 12-month price-to-sales ratio of 9.0, while the industry average was 6.2.

The Bottom Line

Celsion was up over 50% today, following the company’s request to withdrawal from its registration statement on Form S-1. That in mind, the company’s stock will not be diluted from the public offering, and traders saw this as a positive catalyst. However, there are some reasons why some market participants may be bullish, as well as bearish on the stock. For example, the stock closed up significantly higher today, and some traders might see this as a mean reversion play, while others may see this as a momentum play. Additionally, Celsion’s valuation ratios are mixed, and therefore, there are some fundamental investors out there who may be bullish, as well as bearish on the name.

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