HALIFAX, NOVA SCOTIA--(Marketwired - Nov. 21, 2013) -
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Immunovaccine Inc. ("Immunovaccine" or "IMV") (TSX VENTURE:IMV), a clinical stage vaccine and immunotherapy company, has closed the previously announced private placement of its securities, raising gross proceeds of $4.2 million (the "Private Placement"). Under terms of the financing, a total of 10,511,209 common shares (the "Common Shares") of Immunovaccine were sold at a price of $0.40 per Common Share.
Net proceeds from the Offering will be used for general corporate purposes.
"This successful offering places IMV in the strongest financial position it has achieved in several years," said Albert Scardino, executive chairman of the company. "We estimate that these funds, together with previously announced debt financing secured from the Province of Nova Scotia, will provide sufficient cash to carry the company into 2015."
Scardino said that the additional funding would help the company secure a co-development partner for its DPX Survivac Phase II trial in ovarian cancer. The trial will be sponsored and conducted by the National Cancer Institute of Canada's Clinical Trials Group.
"IMV has attracted the equivalent of $32 million this year from government agencies and research institutions to support our scientific studies," Scardino said. "Added to the total of nearly $6 million in equity funding and $5 million in secured debt, the direction of the company is clear."
In connection with the Private Placement, Immunovaccine has agreed to pay finders' fees representing an aggregate of $82,562 in cash along with 167,218 Common Shares and 63,000 compensation options, each compensation option entitling its holder to purchase one Common Share at a price of $0.40 per share until May 21, 2015.
The securities issued in connection with the Private Placement are subject to a four-month plus one day statutory hold period until March 22, 2014.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
Immunovaccine Inc. applies its novel adjuvanting platform to the development of vaccines for cancer therapy, infectious diseases and animal health. The Company's DepoVax™ platform is a patented formulation that provides controlled and prolonged exposure of antigens plus adjuvant to the immune system. Immunovaccine has advanced two DepoVax-based cancer vaccines into Phase I human clinical trials. The Company is also advancing a broad infectious disease pipeline including vaccines in such indications as malaria, respiratory syncytial virus (RSV) and anthrax. In addition to the Company's human health vaccine strategy, it continues to capture value from animal health vaccine applications. Immunovaccine has key partnerships in the animal health sector including an agreement with Pfizer Animal Health. Connect at www.imvaccine.com.
This press release contains forward-looking information under applicable securities law. All information that addresses activities or developments that we expect to occur in the future, including information regarding the use of proceeds of the financing, is forward-looking information. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. However, they should not be regarded as a representation that any of the plans will be achieved. Actual results may differ materially from those set forth in this press release due to risks affecting the company, including access to capital, the successful completion of clinical trials and receipt of all regulatory approvals. Immunovaccine Inc. assumes no responsibility to update forward-looking statements in this press release except as required by law.