Calidi Biotherapeutics Inc ( CLDI ) shares are trading lower by 30.7% to $0.21 during Friday’s session after the company announced a definitive agreement for the immediate exercise of certain Series B and C warrants to buy up to 10.698 million shares of its common stock at 20 cents per share.

This exercise, expected to generate approximately $2.1 million before fees and expenses, involves warrants issued in April 2024 with terms of twelve and four months, respectively. In return for the immediate exercise, Calidi will issue new unregistered warrants to purchase up to 10.698 million shares at 30 cents per share, exercisable upon shareholder approval, with a term of five and a half years.

Additionally, new Series B-1 and C-1 warrants, also totaling 10.698 million shares at 20 cents per share, expiring in five years, will be issued. The offering is expected to close around June 3, pending customary conditions. The proceeds will fund Calidi’s clinical and pre-clinical programs, operating expenses and working capital.

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Should I Sell My CLDI Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Calidi Biotherapeutics ( CLDI ) have decreased by 97.99% in the past year. An investor who bought shares of Calidi Biotherapeutics ( CLDI ) at the beginning of the year would take a loss of $1.23 per share if they sold it today. The stock has risen 4.48% over the past month, meaning an investor who bought shares on Apr. 1 would see a capital loss of $0.29.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Calidi Biotherapeutics ( CLDI ) stock currently has an RSI of 80.75, indicating overbought conditions.

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CLDI has a 52-week high of $5.00 and a 52-week low of $0.14.