TORONTO, Ontario and CAMBRIDGE, Massachusetts - ProMIS Neurosciences Inc. (NASDAQ: PMN), a biotechnology firm specializing in antibody therapeutics for neurodegenerative diseases, announced a private investment in public equity (PIPE) financing agreement.
The company has raised approximately $30.3 million by issuing units consisting of common shares and warrants, with potential for an additional $92.4 million upon exercise of the warrants, contingent on shareholder approval.
The financing, which includes both new and existing investors, is slated to close on July 31, 2024, subject to standard closing conditions. Guggenheim Securities, LLC served as the lead placement agent, with Ceros Financial Services, Inc. and Leede Financial Inc. also participating in the arrangement.
ProMIS intends to use the proceeds to advance the clinical development of its lead therapeutic candidate, PMN310, for Alzheimer's Disease, as well as for working capital and general corporate expenses. PMN310 is currently in a Phase Ib study, with the company anticipating the funding to extend its operational runway beyond the upcoming 6 and 12-month data milestones.
The PIPE financing includes three tranches of warrants, with Tranche A and Tranche B warrants subject to shareholder approval as per Nasdaq Listing Rule 5635(d). The Tranche A warrants, priced at $2.02, and the Tranche B warrants, also at $2.02, have varying exercise conditions and expiration dates based on the release of clinical study data. Tranche C warrants are immediately exercisable at $2.50 and will expire on July 31, 2029.
The securities offered in this PIPE financing have not been registered under the Securities Act of 1933 and may not be sold in the United States absent registration or an exemption from registration requirements. ProMIS has committed to registering the resale of the common shares and shares issuable upon exercise of the warrants with the SEC.
This funding initiative has attracted healthcare specialist investors such as Great Point Partners, LLC, Armistice Capital, Ally Bridge Group, Sphera Healthcare, and other institutional and individual accredited investors.
The information in this article is based on a press release statement from ProMIS Neurosciences Inc.
In other recent news, ProMIS Neurosciences has reported positive preliminary results from its Phase 1a clinical trial of PMN310, a potential treatment for Alzheimer's disease. The study, involving healthy volunteers, revealed that PMN310 was well-tolerated across four ascending dose levels and successfully crossed the blood-brain barrier.
No serious adverse events were reported, and the drug demonstrated a favorable safety profile. Furthermore, the cerebrospinal fluid of participants showed dose-dependent levels of PMN310, suggesting potential engagement with disease targets in Alzheimer's patients.
The company's CEO, Neil Warma, and Chief Medical Officer, Dr. Larry Altstiel, expressed optimism about these results and the potential for advancing PMN310 into the next phase of clinical trials.
The full dataset from the trial is expected to be presented at a medical meeting later this year. These are recent developments in the company's pursuit of a differentiated treatment option for Alzheimer's disease.
InvestingPro Insights
Amid the recent PIPE financing announcement by ProMIS Neurosciences Inc. (NASDAQ: PMN), the company's financial and market metrics provide a mixed picture for investors. According to InvestingPro data, ProMIS Neurosciences currently has a market capitalization of approximately $38.26 million USD. The company's Price / Book ratio, as of the last twelve months leading into Q1 2024, stands at a lofty 496.29, which may signal a premium valuation relative to the company's book value.
Despite the influx of capital intended for the clinical advancement of its Alzheimer's therapeutic candidate, PMN310, ProMIS Neurosciences has faced challenges reflected in its financial performance. The company has reported a gross profit of negative $6.5 million USD over the last twelve months as of Q1 2024. This aligns with one of the InvestingPro Tips, which highlights the company's weak gross profit margins. Additionally, the company has not been profitable over the past twelve months, with an EBITDA of negative $12.14 million USD, corroborating another InvestingPro Tip that analysts do not anticipate the company will be profitable this year.
On a more positive note, ProMIS has experienced a strong return over the last month, with a 31.87% price total return, which could be indicative of investor optimism surrounding the company's potential in the neurodegenerative disease space. However, it is important to note that ProMIS does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
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