EDINBURGH - TC BioPharm (Holdings) PLC (NASDAQ: TCBP), a clinical-stage biotechnology firm, announced today it has finalized a deal for a registered direct offering of shares and warrants, aiming to raise $2 million. The offering includes the sale of 2 million American Depository Shares and Pre-Funded Warrants at $1 each, along with 2 million Series G warrants with a cash exercise price of £0.78 to a single investor.
The proceeds from this transaction are earmarked to advance the company's clinical trial for relapse/refractory Acute Myeloid Leukemia (AML), as well as for general corporate purposes, including operating expenses and working capital.
TC BioPharm, which specializes in developing allogeneic gamma-delta T cell therapies for cancer and other diseases, is preparing to submit a final prospectus supplement with further details about the offering to the Securities and Exchange Commission (SEC).
The company's focus on gamma-delta T cell therapies positions it at the forefront of this area of cancer treatment. TC BioPharm claims leadership in the field and is the first to conduct phase II/pivotal clinical studies in oncology with its proprietary allogeneic CryoTC technology. This technology is designed to provide clinics worldwide with frozen gamma-delta T cell products for the treatment of AML.
In other recent news, TC BioPharm, a clinical-stage biotechnology company, has announced several significant developments. The company has adjusted the ratio of its American Depositary Shares (ADSs) to ordinary shares, increasing it from one ADS representing twenty ordinary shares to one ADS representing two hundred ordinary shares.
This change, essentially a one-for-10 reverse ADS split, is due to become effective in August 2024. The Bank of New York Mellon (NYSE:BK), the depositary bank for TC BioPharm's ADS program, will oversee the exchange process.
In terms of financial developments, TC BioPharm has secured approximately $3.9 million in gross proceeds from the exercise of warrants, which are to fund an upcoming clinical trial targeting Acute Myeloid Leukemia, as well as general operating costs and working capital. H.C. Wainwright & Co. has been named as the exclusive placement agent for the offering.
Lastly, TC BioPharm has expressed its intention to acquire a biotechnology firm that specializes in Chimeric Antigen Receptor T-cell (CAR-T) therapies for cancer treatment. This acquisition, which is subject to satisfactory negotiations, adequate financing, and necessary third-party approvals, is part of the company's strategic plan to expand its range of cancer therapies.
InvestingPro Insights
As TC BioPharm (Holdings) PLC (NASDAQ: TCBP) seeks to raise funds through a direct offering, the market's perception of the company's financial health remains critical for potential investors. The latest data from InvestingPro paints a picture of a company facing significant financial challenges. With a market capitalization of just $1.96 million, the company's valuation is modest, reflecting investor sentiment on its prospects.
One of the key InvestingPro Tips for TCBP is that the stock is currently in oversold territory according to the Relative Strength Index (RSI), which could suggest a potential rebound if market conditions improve or if the company delivers positive news. Additionally, the company is quickly burning through cash, which aligns with its need to raise capital for its clinical trials and general corporate purposes.
TCBP's financial metrics further underscore the company's difficulties. The P/E Ratio (adjusted for the last twelve months as of Q1 2024) stands at -0.17, indicating that the company is not currently profitable. Moreover, the company's price has fallen significantly over the last year, with a 1 Year Price Total Return as of late 2024 showing a staggering -96.45%. This decline in share price could be a reflection of the market's concerns about the company's cash burn and its ability to meet short-term obligations, as its liquid assets do not cover its short-term debts.
InvestingPro provides a total of 13 additional tips on TCBP, offering a comprehensive analysis for investors considering this stock. These tips delve deeper into the company's financial health, stock performance, and valuation, which can be found at InvestingPro's dedicated page for TC BioPharm.
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