Cabaletta Bio (CABA) Announces $35 Million Offering of Common Stock, Warrants

Cabaletta Bio, Inc. (“Cabaletta” or the “Company”) (Nasdaq: CABA), a clinical-stage biotechnology company focused on developing and launching the first curative targeted cell therapies for patients with autoimmune diseases, today announced that it has agreed to sell, by way of an underwritten public offering, pre-funded warrants, in lieu of common stock, to purchase 6,213,776 shares of common stock at a price of $5.51999 per pre-funded warrant and 126,815 shares of its common stock at a price of $5.52 per share, for expected aggregate gross proceeds of approximately $35 million, before deducting underwriting discounts and commissions and other estimated offering expenses. The purchase price per share of each pre-funded warrant represents the per share public offering price for the common stock, minus the $0.00001 per share exercise price of such pre-funded warrant. The offering is expected to close on December 12, 2022, subject to customary closing conditions. All of the securities are being offered by Cabaletta.

The oversubscribed offering involved participation from new and existing investors, including Venrock Healthcare Capital Partners, Adage Capital Partners LP, Cormorant Asset Management and an undisclosed life sciences-focused investment fund, among others.

Cowen and Company, LLC and Evercore Group L.L.C. are acting as joint book-running managers for the offering.

Cabaletta intends to use the net proceeds from the offering, together with existing cash and cash equivalents, to fund the completion of preclinical development and the Investigational New Drug (“IND”) application submission for CABA-201, the initial clinical development of CABA-201 in multiple indications and the ongoing clinical studies for its DSG3-CAART and MuSK-CAART product candidates, as well as for working capital and general corporate purposes.

The public offering is being made pursuant to a registration statement on Form S-3 previously filed with the Securities and Exchange Commission (“SEC”), which became effective on November 18, 2020. A prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Copies of the prospectus supplement and accompanying prospectus relating to this offering, when available, may be obtained from Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attn: Prospectus Department, by phone at (833) 297-2926, or by email at [email protected] or Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055; by telephone at (888) 474-0200, or by email at [email protected].

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