The company Immunic, focused on the treatment of chronic inflammatory and autoimmune diseases, has announced the closing of a securities purchase agreement with select accredited investors and certain existing investors. Immunic, which has its research operations headquartered in Gräfelfing, near Munich, Germany, said it expects to raise gross proceeds of approximately USD 60 million before deducting all costs associated with the offering.
The private investment in public equity (“PIPE”) financing provides the issuance and sale of an aggregate of 8,696,552 shares of its common stock (“Common Stock”) at a price of $4.35 per share, reflecting a 10% premium to the closing price on October 7, 2022 on NASDAQ, and pre-funded warrants to purchase up to an aggregate of 5,096,552 shares of Common Stock at a purchase price of USD 4.34 per pre-funded warrant share. The Pre-Funded Warrants will have an exercise price of USD 0.01 per share of Common Stock, to be immediately exercisable and remain exercisable until exercised in full. Immunic anticipates the gross proceeds from the PIPE to be approximately $60.0 million, before deducting any offering related expenses. The financing is expected to close on October 12, 2022, subject to customary closing conditions.
The oversubscribed financing is expected to close on Oct. 12, subject to customary closing conditions. Participating new and existing institutional investors include Deep Track Capital, Commodore Capital, BVF Partners LP, RTW Investments, LP, Great Point Partners, Logos Capital, Vivo Capital, Invus, Adage Capital Partners LP, Parkman Healthcare Partners and Sphera Healthcare.
“We are highly pleased that this group of renowned, high-quality investors has participated in the financing to support our clinical-stage development pipeline targeting chronic inflammatory and autoimmune diseases,” commented Dr. Daniel Vitt, Chief Executive Officer and President of Immunic. “Most notably, later this month, we eagerly await the initial clinical activity data from part C of our phase 1 clinical trial of IMU-935, our highly potent and selective oral IL-17 inhibitor, in moderate-to-severe psoriasis patients.”
The Company intends to use net proceeds from the financing to fund the ongoing clinical development of its three lead product candidates, vidofludimus calcium (IMU-838), IMU-935 and IMU-856, and for other general corporate purposes. The proceeds from this PIPE financing, combined with current cash, cash equivalents and marketable securities, is expected to fund operating and capital expenditures into the fourth quarter of 2024.