Immunomedics, Inc. (NASDAQ:IMMU) announced that it has priced an underwritten offering of 10,000,000 shares of common stock and warrants to purchase up to 10,000,000 shares of common stock with anticipated gross proceeds of $30 million. Each share of common stock and accompanying warrant will be priced at $3.00. The warrants will be exercisable six months following the date of issuance, will expire on the second anniversary of the date of issuance and have an exercise price of $3.75.
Immunomedics intends to use the proceeds from the offering primarily in continuing support of clinical and regulatory activities for IMMU-132, including submission of a NDA to FDA for accelerated approval in metastatic triple-negative breast cancer, and for working capital and general corporate purposes. (Original Source)
The public offering would dilute shareholders’ investments, and as such Immunomedics shares are currently dropping nearly 27% to $2.40 in Wednesday session. IMMU has a 1-year high of $5.44 and a 1-year low of $1.61. The stock’s 50-day moving average is $2.99 and its 200-day moving average is $3.04.
On the ratings front, Wells Fargo analyst Jim Birchenough downgraded IMMU to Hold, in a report issued on June 21. According to TipRanks.com, Birchenough has a yearly average return of 21.4%, a 53% success rate, and is ranked #77 out of 4193 analysts.
Immunomedics, Inc. is a clinical-stage biopharmaceutical company, which engages in the business of researching, developing, manufacturing and marketing biopharmaceutical products. The company primarily focused on the development of monoclonal, antibody-based products for the targeted treatment of cancer, autoimmune and other serious diseases. It markets and sells its products in the U.S. and throughout Europe.