NES-ZIONA, Israel - Enlivex Therapeutics Ltd. (NASDAQ:ENLV), a clinical-stage immunotherapy company, announced a definitive agreement with an institutional investor for a registered direct offering. The deal includes the sale of over 3.5 million ordinary shares and warrants, potentially bringing in a total of $15 million.
The transaction, expected to close around Wednesday, May 29, 2024, involves an initial $5 million in gross proceeds. The company also issued two series of warrants, which if exercised, could yield an additional $10 million.
These warrants are exercisable immediately upon issuance at $1.40 per share, with Series A expiring after 18 months or upon positive trial results, and Series B expiring after five and a half years or upon FDA filing for Allocetra™, a treatment for osteoarthritis.
H.C. Wainwright & Co. is the exclusive placement agent for the offering, which is based on a previously filed and effective registration statement with the SEC. The funds are earmarked for working capital and general corporate purposes, but there is no guarantee that the warrants will be exercised.
Enlivex's focus is on Allocetra™, a cell therapy aimed at reprogramming macrophages to restore immune balance, which is vital in treating life-threatening conditions. The company's forward-looking statements highlight their potential market opportunities and ongoing clinical studies, but also acknowledge the risks and uncertainties inherent in drug development.
This financial move comes as part of Enlivex's broader efforts to advance its clinical programs and secure the capital necessary for ongoing operations and research. The information for this article is based on a press release statement from Enlivex Therapeutics Ltd.
InvestingPro Insights
As Enlivex Therapeutics Ltd. (NASDAQ:ENLV) navigates the financial landscape with its recent registered direct offering, key metrics from InvestingPro provide a snapshot of the company's current market position.
With a market capitalization of approximately $26.34 million USD and a price-to-book ratio as of the last twelve months of Q4 2023 at 0.88, investors may gauge the company's valuation relative to its net asset value. Despite the challenges, Enlivex holds more cash than debt, an InvestingPro Tip that suggests a potentially stronger position to manage its financial commitments.
Still, the company's financial health is not without its concerns. Enlivex is quickly burning through cash and has not been profitable over the last twelve months, as indicated by a negative P/E ratio of -0.88 and an adjusted P/E ratio of -1.04 for the same period. These InvestingPro Data points underscore the urgency for the company to effectively utilize the proceeds from its share and warrant sale.
InvestingPro Tips also reveal that Enlivex has high shareholder yield but is suffering from weak gross profit margins, which could be a red flag for investors looking at the company's ability to turn a profit. Moreover, analysts do not anticipate the company will be profitable this year, and the valuation implies a poor free cash flow yield.
With a total of 11 additional InvestingPro Tips available, investors can gain deeper insights into Enlivex's financial health and future prospects by visiting https://www.investing.com/pro/ENLV. To access these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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