Helix BioPharma Corp (TSE:HBP) (OTCMKTS:HBPCF) said that it has closed a private placement financing of 5,042,016 units at $1.0332 per unit, and the concurrent disposition of 1,708,023 shares of the company’s Polish subsidiary Helix Immuno-Oncology SA to a third-party purchaser for aggregate gross proceeds of C$6 million.
In a statement, the Toronto-based immuno-oncology company said each unit comprised of a share and a share purchase warrant. Each share purchase warrant will entitle the holder to buy one share at an exercise price of $1.67 and have an expiry of five years from the date of issuance.
The terms of the private placement also included the concurrent disposition by Helix of 1,708,023 shares of its Polish subsidiary, representing 15.5% of the outstanding shares of Helix Immuno-Oncology. Following the disposition, the company owns 51% of the outstanding shares of its subsidiary Helix Immuno-Oncology.
READ: Noble initiates coverage on Helix BioPharma with an Outperform rating
It intends to use the net proceeds of the private placement for working capital and research and development activities, said the company.
ACM Alpha Consulting Management AG provided financial advisory services to Helix in connection with the private placement.
The Candian biotechnology company is developing an immune-oncology drug platform for the treatment of cancer that is designed to modify the tumor microenvironment to become hostile for fighting immune system cells. Its lead drug, L-DOS47, is in Phase II clinical trials for the treatment of non-small cell lung cancer and pancreatic cancer.
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