Immunicto Privately Place Up To $240 Mln Of Shares; Stock Up In Pre-market

(RTTNews) - Immunic, Inc. (IMUX), a biotechnology company, on Friday announced that it entered into an agreement with certain investors to place up to $240 million worth common shares.

The company intends to use the proceeds to fund the ongoing clinical development of its three lead product candidates, vidofludimus calcium (IMU-838), IMU-856 and IMU-381, and for general corporate purposes.

Following this news, the stock surged up around 11 percent on the Nasdaq, in pre-market activity.

The first tranche consists of an upfront payment of $80 million at $1.43 per share which is expected to close on January 8.

The second tranche is a mandatory purchase of an additional $80 million of common shares at $1.716 per share, representing 120 percent of the purchase price of the first tranche. It is contingent on the announcement of phase 2b topline data for the Company's vidofludimus calcium (IMU-838) progressive multiple sclerosis clinical trial, volume weighted average share price levels, and minimum trading volumes.

The third tranche will occur no later than three years after the second tranche for the issuance of $80 million of common shares or pre-funded warrants at the same price per share as the second tranche. This tranche allows investors to fund their purchase obligations on a cashless or net settlement basis, reducing the proceeds to be raised for financing.

The total gross proceeds from the offering is expected anywhere between $160 and $240 million.

Leerink Partners is serving as the lead placement agent and Ladenburg Thalmann is acting as a placement agent.

In premarket activity, Immunic shares are trading at $1.59, up 11.18% on the Nasdaq.