Immune Pharmaceuticals Inc has secured financings of up to USD21.5 million through two financing agreements. The first, with Hercules Technology Growth Capital, for a term loan of up to USD9.5 million. The second agreement, with mutual fund Discover Growth Fund, for the sale to Discover of newly created Series D Redeemable Convertible Preferred Stock for up to USD12 million in gross proceeds to the company.
Immune received USD13.5 million in gross proceeds: USD9.0 million from Discover and USD4.5 million from Hercules, following the execution of the two agreements. Immune expects to receive an additional USD3.0 million from Discover upon an effective "resale" registration statement for the securities sold and stockholders approval in accordance with the NASDAQ rules (stockholders of the company, representing close to 50 per cent of the voting power as of July 28, 2015, have already agreed to vote in favour of such proposal). Immune also has the option to draw down additional capital under the term loan with Hercules of up to USD5.0 million prior to June 15, 2016, subject to certain clinical milestones and other conditions.
"We believe bertilimumab is a promising first-in-class clinical asset with the potential to address unmet medical needs for several inflammatory and auto-immune conditions," says Himani Bhalla (pictured), Principal at Hercules. "Hercules' track record of investing in numerous biotechnology companies focused on antibody therapeutics provides us with an insight into the potential of the Immune pipeline," she added.
The Preferred Stock issued to Discover is convertible at a fixed price of USD2.50 per share and has a six and a half year maturity term, at which time it will convert automatically into common stock at USD2.50 per share. The preferred stock bears an accrued annual dividend rate of 8.0 per cent, which may range from 0 per cent to 15 per cent, based on certain adjustments and conditions. The dividend is payable in cash or common stock at the sole discretion of Immune.
"These financing agreements offer a vote of confidence from two institutional investors, Hercules and Discover, in support of clinical development for our drug candidate, bertilimumab, in bullous pemphigoid and ulcerative colitis,” says Dr Daniel Teper, Chief Executive Officer, Immune. "With this financing, we intend to pursue a three-fold approach to advance our pipeline in addition to the two key indications described: explore additional indications for bertilimumab, bring the topical nano-formulated cyclosporine program into clinical trials in atopic dermatitis and psoriasis, and advance our lead NanomAb candidate to Phase I in oncology,"
"This financing extends our working capital for the next eighteen to twenty four months. It strengthens our balance sheet in support of growth-oriented research and development activities consistent with our long-range business plan. In addition, this financing strengthens our ability to maximise the value of the AmiKet asset in our on-going partnering discussions,” adds Gad Berdugo, Executive Vice President and Chief Financial Officer of Immune.
