Biotech company PharmaCyte (NASDAQ: PMCB) is having an upbeat run resource-wise. This after it announced that the company has formally agreed to close a $70 million registered direct offering according to Nasdaq rules from various institutional investors. It has disclosed entering agreements to sell 14,000,000 shares of company stocks priced at $5.00 per share.  

In addition, investors are entitled to purchase through unregistered warrants common stock up to a total of 7,000,000 shares. Such warrants are subject to a $5.00 per share exercise price, which expires five years after the issuance date and is exercisable immediately once issued.

The company has selected H.C. Wainwright & Co. to be the sole book-running agent for this multimillion-dollar offering.

Earlier in August, PharmaCyte had also completed a whopping $15 million public offering, involving 3,529,412 shares of common stocks as well as warrants to buy an aggregate equal number of common stocks shares. 

PharmaCyte to use offering for LAPC trials

The biotech company is known for the development of groundbreaking cellular therapies focused on curing diabetes and cancer. For instance, its proprietary Cell-in-a-Box® live-cell encapsulation technology is a novel way to develop treatments for diabetes. Boosted by increasing demand for such technological innovations, PharmaCyte is ramping up its clinical trials to address chronic diseases.

PharmaCyte is keen at using all offering proceeds to boost its clinical trials focused on locally advanced, inoperable pancreatic cancer (LAPC). Specifically, the proceeds will:

  • Comply with required activities mandated by the US Food and Drug Administration to lift the suspension of clinical trials involving the Investigational New Drug (IND) application for its LAPC phase 2 clinical trials;
  • Secure full funding for the conduct of LAPC phase 2 clinical trials should the IND be withdrawn; and 
  • Secure working capital for its general operations.

For transparency purposes, the company disclosed that common stock shares or equivalents are offered and sold via a registered direct offering in adherence to a Form S-4 shelf registration statement filed prior but afterward considered effective by the US SEC. In addition, through a press release, it clarified that all offerings of common stock shares are possible only via a written prospectus, one that involves a prospectus statement to complete an effective registration statement.

Furthermore, the company clarified that the warrants involved were offered through private placement, according to Section 4(a)(2) of the Securities Act of 1933 as well as Regulation D.