Shares of Elicio Therapeutics (ELTX) plunged over 24% premarket on Thursday after the clinical-stage biotech announced a $15 million registered direct offering. The financing comes less than three weeks after the company's lead pancreatic cancer candidate failed to meet the primary endpoint in a mid-stage study.

Elicio Prices $15M Registered Direct Offering 

Elicio expects to generate net proceeds of about $15 million, before deducting offering expenses and agent fees. The offering is expected to conclude on or before July 6.

The company said it had entered into a securities purchase agreement with two institutional investors to sell more than 4.3 million shares.

Proceeds Will Fund Lead Pancreatic Cancer Program

The company said it expects to use net proceeds, together with its existing cash reserves and marketable securities, to fund the planned Phase 1 clinical development of ELI-002 7P in metastatic PDAC, the company’s pipeline and platform, and general administrative purposes and working capital.

Elicio Therapeutics, in its first-quarter earnings report on May 11, noted that the company had raised net proceeds of about $8 million during the quarter and an additional $5 million in the second quarter to date, bringing total net proceeds to about $13 million through its at-the-market program.

As of March 31, the company had cash and cash equivalents of about $14.9 million and expected them to last through the fourth quarter of 2026.

Elicio’s Financing Follows June Clinical Trial Setback

On June 15, the biotech company reported results from a mid-stage study of its experimental drug ELI-002 7P. The study did not meet the primary goal of significantly delaying cancer recurrence in patients who were operated to remove pancreatic cancer.

The company had said it would plan and focus on its late-stage study for patients with lower risks, who had clean surgical margins. Elicio Therapeutics also said it plans to extend the treatment duration.

“Promising efficacy signals in patients with lower residual disease burden sharpens our path forward,” said Robert Connelly, Chief Executive Officer at Elicio Therapeutics.

On the same day, the ELTX stock suffered its biggest loss this year, and plunged more than 72%.

What Retail Thinks Of ELTX

On Stocktwits, retail sentiment surrounding the stock has remained ‘bearish’ amid ‘low’ message volumes over the past 24 hours.

has declined by more than 36% so far this year.