Immunic Inc (NASDAQ:IMUX) announced on Friday that it would be raising up to $240 million in a private placement which CEO Dr. Daniel Vitt said would support the company to achieve its next big milestones.
"That is an important step really giving us all the tools and all the resources to continue on bringing forward our lead molecule vidofludimus calcium in multiple sclerosis specifically," Dr. Vitt told Proactive.
The company said it has entered into a securities purchase agreement with selected accredited investors to purchase its stock or pre-funded warrants in lieu in a three-tranche offering.
The first tranche is an upfront payment of $80 million at $1.43 per share which is expected to close on January 8, 2024.
This will be followed by the purchase of shares of stock or pre-funded warrants at $1.716 per share, subject to certain conditions, including the announcement of Phase 2b topline data for the company's vidofludimus calcium (IMU-838) progressive multiple sclerosis clinical trial.
A third tranche, which is required to occur no later than three years after the second tranche, provides for the issuance of $80 million in shares or pre-funded warrants at the same price per share as the second tranche but allows investors to fund their purchase obligations on a “cashless” or net settlement basis.
Net proceeds from the fundraising will be used to support Immunic’s ongoing development of its three lead product candidates, vidofludimus calcium (IMU-838), IMU-856 and IMU-381, and for other general corporate purposes.
“We expect the first $80 million tranche to extend our cash runway into the third quarter of 2025, which well covers the top-line data readout of our CALLIPER trial in April 2025,” Dr. Vitt commented in a statement.
“The second tranche, assuming it is exercised, would even finance us into the first quarter of 2027.”
Separately, the company in a press release, highlighted its key accomplishments from 2023, which included clinical data releases, the grant of new patents, and the strengthening of its balance sheet and board of directors.
“The past year has been an extraordinarily productive and successful one for Immunic, with key clinical data releases highlighting the uniqueness and enormous value potential of each of our two latest-stage clinical assets," Dr. Vitt commented.
“With vidofludimus calcium (IMU-838) and IMU-856, we have two development programs beyond clinical proof-of-concept which is an outstanding achievement of our entire team.”
The full 2023 recap can be found here.
Immunic is a biotechnology company developing a clinical pipeline of orally administered, small-molecule therapies for chronic inflammatory and autoimmune diseases.
- Updated with video, CEO commentary -