PHILADELPHIA and VANCOUVER, British Columbia - BriaCell Therapeutics Corp. (NASDAQ:BCTX, BCTXW) (TSX:BCT), a clinical-stage biotechnology firm specializing in novel immunotherapies for cancer treatment, disclosed today its agreement with healthcare-focused institutional investors for a securities purchase. The company will sell approximately 2.4 million common shares and warrants, aiming to raise $5 million in gross proceeds before fees and expenses.
The transaction includes a mix of common shares and pre-funded warrants at a price of $2.00 for institutional investors and $2.215 for an existing investor and a company director. The attached warrants, exercisable at $2.11 per share, will be available six months post-issuance and expire five years from the initial exercise date. The closing of the offering is anticipated on or about May 17, 2024, subject to standard closing conditions.
BriaCell intends to allocate the net proceeds towards working capital and general corporate purposes, which encompass research and development activities, specifically the Phase 3 pivotal study in advanced breast cancer, as well as patent and legal costs. The company also considering repurchasing some of its issued shares and warrants.
A.G.P./Alliance Global Partners (NYSE:GLP) is the sole placement agent for the offering, which is conducted under a shelf registration statement previously filed and declared effective by the U.S. Securities and Exchange Commission.
A director's participation in the offering is considered a related party transaction, but the company asserts that it falls below the threshold requiring formal valuation or minority shareholder approval.
The information presented is based on a press release statement from BriaCell Therapeutics Corp.
InvestingPro Insights
BriaCell Therapeutics Corp. (NASDAQ:BCTX) has recently made headlines with its securities purchase agreement aimed at raising capital for its clinical-stage immunotherapy research. As investors consider the potential of this biotech firm, certain financial metrics and InvestingPro Tips provide a deeper understanding of the company's current position. With a market capitalization of approximately $33.5 million and a price per share at the previous close of $2.11, BriaCell's financial landscape is marked by a notable cash position and liquidity.
InvestingPro Tips suggest that BriaCell holds more cash than debt, which is a positive sign for investors looking for companies with a solid balance sheet. Additionally, the company's liquid assets exceed its short-term obligations, indicating a degree of financial flexibility in the near term. However, potential investors should be aware that BriaCell is not currently profitable, and the stock price has been quite volatile, trading near its 52-week low.
When considering the company's earnings and profitability, the P/E Ratio stands at -2.75, reflecting the challenges BriaCell faces in terms of earnings. The company's stock has also taken a significant hit over the last six months, with a 52.05% decline in price total return. These metrics underscore the risks associated with investing in a clinical-stage biotech firm that is still in the process of developing its product offerings.
For those interested in a more in-depth analysis, InvestingPro offers additional tips on BriaCell, including its performance metrics and analyst targets. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to these valuable insights. Currently, there are 7 additional InvestingPro Tips available for BriaCell, which can be found at: https://www.investing.com/pro/BCTX
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