Camp4 Therapeutics (NASDAQ:CAMP) shares dropped 8.6% on Thursday after the clinical-stage biotech company disclosed the pricing of a $30 million underwritten share offering.
The company priced the sale of 5 million common shares at $6.00 each, with gross proceeds expected to total $30 million before underwriting fees and other expenses. The transaction is scheduled to close around December 19, 2025, subject to customary closing conditions.
Camp4 said the funds will be used to advance the development of its pipeline of product candidates and for general corporate purposes. The company is focused on regulatory RNA-targeting therapies aimed at increasing gene expression to restore normal protein levels in patients with genetic disorders.
The offering attracted both new and existing investors, including a large mutual fund complex, as well as Janus Henderson Investors, Coastlands Capital, EcoR1 Capital, Trails Edge Capital Partners, and Vivo Capital. Leerink Partners is serving as the sole underwriter.
Investor concerns over dilution from the newly issued shares appear to be weighing on the stock as the market absorbs the impact of the additional equity.