Immunic, Inc. IMUX shares are holding steady, following a surge early Friday, when the company revealed a three-tranche private placement of up to $240 million.
Understanding the Deal:
Immunic disclosed that the initial tranche is an upfront payment of $80 million at $1.43 per share, anticipated to be finalized on Jan. 8, subject to standard closing conditions.
The second tranche comprises a mandatory purchase of an additional $80 million worth of common stock at $1.716 per share, which equals 120% of the first tranche purchase price and hinges on the announcement of phase 2b topline data for the vidofludimus calcium (IMU-838) progressive multiple sclerosis clinical trial, alongside volume weighted average share price levels, and minimum trading volumes.
A third tranche, set to occur no later than three years after the second tranche, allows for the issuance of $80 million of common stock (or pre-funded warrants in lieu thereof) at the same price per share as the second tranche.
Immunic anticipates total gross proceeds from the offering to fall within the $160 and $240 million range.
The company also shared a business update on Friday, spotlighting recent achievements and forthcoming milestones.
“The past year has been an incredibly productive and successful one for Immunic, with crucial clinical data releases underscoring the distinctiveness and tremendous value potential of each of our two latest-stage clinical assets,” stated Daniel Vitt, Ph.D., CEO of Immunic.
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IMUX Price Action: According to Benzinga Pro, Immunic shares are up 0.64% at $1.44 at the time of publication.
Image: Steve Buissine from Pixabay
