Humanigen, Inc. (OTCMKTS:HGEN) has revealed that it is contemplating raising funds by conducting a broadly syndicated rights offering involving issuing a dividend of rights and over-subscription rights to purchase shares of its capital stock.
The clinical-stage biopharmaceutical company said a broadly syndicated rights offering would be a democratization of the public offering process allowing all stockholders of record to participate in the process.
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In this scenario, stockholders as of the record date would receive a right but not the obligation to purchase Shares during a to-be-determined exercise period.
Stockholders as of the record date would also receive over-subscription rights to purchase additional shares beyond their pro-rata percentage ownership.
Humanigen said it has engaged RHK Capital to gauge feedback and interest for this potential rights offering.
Cameron Durant, Humanigen’s chief executive officer said: "We are evaluating conducting a rights offering primarily to raise additional capital to pursue our GM-CSF neutralization strategy in a clinical collaboration with Kite, a Gilead company.
“If we proceed with this offering to our stockholders, our stockholders will have the first opportunity to purchase additional securities to maintain or increase their current percentage ownership in our company and provide capital to us at what we believe are attractive price levels."
Humanigen is developing its portfolio of next-generation cell and gene therapies for the treatment of cancers via its novel, cutting-edge GM-CSF neutralization and gene-knockout platforms.
The company’s immediate focus is combining FDA-approved and development stage CAR-T therapies with lenzilumab, the company’s proprietary anti-human-GM-CSF immunotherapy, which is its lead product candidate.
A clinical collaboration with Kite was recently announced to evaluate the sequential use of lenzilumab with Yescarta, axicabtagene ciloleucel, in a multicenter clinical trial in adults with relapsed or refractory large B-cell lymphoma.
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