Shares of Immunic rise more than 10% in premarket trading after securing a private placement to raise up to $240 million.
Immunic, a biotechnology company based in New York, announced that it has entered into a three-tranche private placement, leading to a surge of more than 10% in its share prices during premarket trading on Friday. The company has reached an agreement with certain accredited investors to purchase an initial $80 million worth of stock at $1.43 per share, which is consistent with the closing price from Thursday.
The current market capitalization of Immunic stands at approximately $64.6 million. As part of the agreement, there is a provision for a second tranche of $80 million of stock to be issued at $1.716 per share, subject to specific conditions. These conditions include the release of Phase 2b top-line data for Immunic’s vidofludimus calcium progressive multiple sclerosis study.
Furthermore, if the conditions are met, a third tranche of $80 million at $1.716 per share will be available within three years of the second tranche. The financing arrangement secures additional funding for Immunic and extends the company’s cash runway into the third quarter of 2025.
The private placement is being led by BVF Partners and has participation from Avidity Partners, Janus Henderson Investors, Soleus Capital, RTW Investments, and Adage Capital Partners. This significant investment demonstrates the confidence these investors have in Immunic’s potential for growth.
At the time of writing, Immunic shares were trading at $1.60 in premarket trading, reflecting a 12% increase from previous levels.
