Heat Biologics Inc (NASDAQ:HTBX) has declared a public offering of its 9.10 million common stocks and warrants at a per share price of $0.75. The net worth of these shares that the company is offering is around $6.8 million without deduction of underwriting discount and expenses.
The company will be separating the common stock and warrants ahead of the sale as the warrants are likely to expire in five years from issue date and have an exercise per share price of $1.00. A public trading market is not there for the warrants and the offering of the company is available till March 23, 2016.
The proceeds from the public offering are expected to be used for completion of the Phase 2 clinical trial of HS-410 that will help treat non-muscle invasive bladder cancer (NMIBC). Also, the HS-110 treatment for non-small cell lung cancer (NSCLC) will also be funded by the proceeds. This means that the eight NSCLC patients will now be evaluated under the Phase 1 b lab tests.
Apart from these treatments that are the primary focus of Heat Biologics and will prove to be a major breakthrough for the company, the extra capital will be used for licensing and asset acquiring activities.
The company is into development of new treatments for fighting cancer in patients through activation of the immune system. The cell-stimulating treatments ImPACT and ComPACT are a breakthrough in this regard.
These therapies along with many others are targeted to act as a robust mechanism for activating the CD8+ T cells that are known to kill the cancer cells in the body by making the immune system a potent weapon. Also, the company is actively working on therapies for reversing immune suppression caused by tumors and improving the immune system to respond better to treatment.
Breakthrough in Medical Science
The ongoing HS-410 phase 2 clinical trial for treatment of NMIBC patients and the HS-110 phase 1 clinical tests for NSCLC patients are the company’s latest novel therapies that are aimed at making it a pioneer in cancer treatments. Once these trials are over, a clearer picture of the efficacy of these therapies will be available.