ImmunoCellular Therapeutics (NYSE:IMUC) announced that it has priced an underwritten public offering of an aggregate of 26,650,000 shares of its common stock at a price to the public of $0.60 per share, and warrants to purchase up to an aggregate of 18,655,000 shares of its common stock. The net offering proceeds to ImmunoCellular from this offering are expected to be approximately $14.6 million, after deducting the underwriting discount and estimated offering expenses payable by ImmunoCellular, but excluding the exercise of any warrants.
The shares of common stock will be immediately separable from the warrants and will be issued separately. The warrants are exercisable immediately upon issuance, have a five-year term and an exercise price of $0.66 per share. The warrants will be certificated, and will be delivered to the investors by physical delivery following the closing. There is no established public trading market for the warrants and ImmunoCellular does not expect a market to develop.
The offering is expected to close on or about February 18, 2015, subject to customary closing conditions.
Roth Capital Partners is acting as the sole manager for the offering.
ImmunoCellular intends to use the net proceeds of this offering to enroll its current planned phase III clinical trial of ICT-107, to complete phase I development of ICT-121, to commence its T-cell research program, and for working capital and general corporate purposes. A portion of the net proceeds may be used to acquire additional technologies.
On the ratings front, ImmunoCellular has been the subject of a number of recent research reports. In a report issued on December 1, Maxim Group analyst Jason Kolbert maintained a Buy rating on IMUC, with a price target of $4, which represents a potential upside of 506.1% from where the stock is currently trading. Separately, on November 17, Roth Capital’s Joseph Pantginis reiterated a Buy rating on the stock and has a price target of $3.
ImmunoCellular Therapeutics Ltdis a clinical-stage biotechnology company that develops immune-based therapies for the treatment of cancers, such as brain, ovarian and other solid tumors.