Why Has The Exicure (XCUR) Stock Price Gained Nearly 12% In After-Hour Trades?

Last Friday, Exicure Inc. (NASDAQ: XCUR) gained 11.76% to $1.90 in extended trades. It slipped -5.56% to finish the weekend session at $1.70, fluctuating between $1.70 and $1.8201. In the absence of any significant news, the stock price surged after hours, so recent developments could provide a better understanding of the situation.

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Recent developments at XCUR:

In order to maximize stockholder value, Exicure (XCUR) recently announced plans to restructure the Company and align resources. The Exicure Board of Directors has approved the following after reviewing the Company’s business plans and objectives and its cash resources:

  • By the fourth quarter of 2022, approximately 66% of the workforce will be reduced.
  • In addition to ceasing all R&D activities, all partnered programs will also be suspended.
  • Divestment evaluation of immuno-oncology and preclinical assets, including the neuropathy product candidate SCN9A.
  • As a result of the restructuring and realignment, there is no expectation that the company’s executive team will change.

What will the restructuring cost XCUR?

Based on current operating plans and estimates, XCUR anticipates incurring total restructuring expenses of approximately $0.5 million, which include severance and termination expenses. A significant portion of these costs is expected to be recorded in the third quarter of 2022. According to current operating plans and estimates, this restructuring plan will extend Exicure’s cash runway into the second quarter of 2023.

Transacting a private placement with CBI, USA:

Additionally, Exicure has recently announced a sale of 3,400,000 shares of its common stock to an existing investor, CBI USA, Inc. Private placement in public equity (“PIPE”) financing will be carried out by XCUR to CBI USA for $1.60 per share. If certain closing conditions are met, including approval from Exicure stockholders, CBI USA will hold approximately 50.4% of the voting shares at Exicure.

How will XCUR proceed?

It is expected that Exicure (XCUR) will receive approximately $5.4 million from the PIPE, before deducting transaction-related expenses. These proceeds will be used to provide working capital for the Company and for general corporate purposes. XCUR’s Board of Directors approved the transaction, and its stockholders will receive a proxy statement in the next few weeks asking them to approve the CBI USA transaction.

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