Immune Pharmaceuticals Inc (IMNP) Investors Run for the Hills; Here’s Why

Immune's Stock Plunges Amid Convertible Debentures Deal


Shares of Immune Pharmaceuticals Inc (NASDAQ:IMNP) plunged 23% in Thursday’s trading session, after the company disclosed the sale of convertible debentures that could be converted into shares at a deep discount.

The company said it entered into an agreement with certain institutional investors for the sale of of $858,000 in principal amount of original issue discount convertible debentures at a price of $1,30 per convertible debenture unit.

The debentures will not be convertible until the Company obtains shareholder approval for any such conversions. At that time, the debentures will be convertible into shares of the Company’s common stock at a conversion price of $1.75 per share, subject to adjustment, but in no event shall the conversion price fall below $1.00.

In addtion, on May 4, 2017, the Company entered into a securities purchase agreement with certain institutional investors for the sale of original issue discount convertible debentures (the “Prior Debentures”). In exchange for the waiver of certain rights held by the institutional investors and the consent of the institutional investors to allow this offering, the Company agreed to amend the initial conversion price in the Prior Debentures from $2.89 to $1.30.

Immune Pharmaceuticals, Inc. is a clinical stage biopharmaceutical company. It engages in the development and commercialization of targeted therapeutics, including mAbs nanotherapeutics and antibody drug conjugates, for the treatment of inflammatory diseases and cancer. The company acquires, develops and commercialises prescription drug products. Immune Pharmaceuticals was founded by Daniel G. Teper and Jean Elie Kadouche in March, 1993 and is headquartered in New York, NY.

 

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