ImmunoCellular Therapeutics, Ltd. (NYSE:IMUC) has revealed on Tuesday an underwritten public offering of 47 million shares and base warrants to acquire a maximum of 35.25 million shares at $0.16 each. As a result, the company is expecting about $7.40 million in gross proceeds.
Underwritten Public Offering
The exercise price per share of the base warrants has been set at about $0.19. The base warrants are exercisable for five years immediately following the issuance. The underwriters have a 45-day option to acquire up to 7.05 million additional shares while the base warrants have a 45-day option to acquire up to nearly 5.29 million shares.
Subject to regulatory requirements and other closing conditions applicable, the underwritten public offering will close on or about Friday.
For this underwritten public offering, Maxim Group LLC serves as the sole book-running manager while Laidlaw & Co. Ltd. serves as the lead manager.
Purpose of the Net Proceeds
ImmunoCellular Therapeutics will use the net proceeds from the underwritten public offering primarily to further fund the Phase 3 clinical trial of ICT-107 for newly-diagnosed glioblastoma, Phase 1 clinical trial of ICT-121 for recurrent glioblastoma, continuation of the T-cell research program, and other corporate expenses. Possibly, the company may also use some of the net proceeds to purchase new materials.
Research Program Updates
A few weeks ago, ImmunoCellular Therapeutics has issued an update regarding its two lead cancer immunotherapy clinical development studies: 1) Phase 3 clinical trial of ICT-107 for newly-diagnosed glioblastoma; and 2) Phase 1 clinical trial of ICT-121 for recurrent glioblastoma.
For the Phase 3 clinical trial of ICT-107, 109 subjects have already been screened in the US and Canada as of July 21. Qualified subjects will be randomized as soon as they have been rescreened and the standard of care has been fulfilled.
Meanwhile, for the Phase 1 clinical trial of ICT-121, ImmunoCellular noted that the enrollment had been completed with 20 subjects on board. Consequently, the clinical trial has already commenced and is currently being conducted in the US. Initial results from the study are expected to come out over the next 12 months.