University of Minnesota spinout Calyxt has entered the public markets in a flotation that resulted in the share price climbing from $8 to $11.25 on the first day of trading.
US-based agtech producer Calyxt went public yesterday after an initial public offering that netted the University of Minnesota spinout a total of $56m in proceeds.
Calyxt has floated on Nasdaq, under the ticker symbol CLXT. The company had priced seven million shares at the low end of its range at $8, but saw them rise to $11.25 by the end of day.
Founded in 2010 as Cellectis Plant Sciences, Calyxt has developed gene editing technology for plants to create healthier specialty food ingredients and agriculturally advantageous crops.
Calyxt rebranded in May 2015 and licensed additional research from Minnesota two months later. It is yet to launch a product, but is working on a wide range of crops, from high fibre wheat and cold storable potatoes to herbicide tolerant canola and improved yield soybean.
The spinout is exploiting research by Dan Voytas, a professor in the Department of Genetics, Cell Biology and Development and director of the university’s Center for Genome Engineering. Voytas also acts as chief sience officer for Calyxt.
Approximately $20m of the proceeds will fund further R&D for the company’s existing product candidates, while $10m has been allocated to building out commercial capabilities and another $10m will go towards working capital, including grain purchases and meal and oil production.
Calyxt has not disclosed any equity funding. Its regulatory filing related to the initial public offering reveals that it was wholly-owned by parent company Cellectis, which now holds 76.4%.
Citigroup Global Markets and Jefferies acted as representatives for the underwriters, which also included Wells Fargo Securities, BMO Capital Markets and Ladenburg Thalmann & Co.
