Immunovaccine, Inc., a Nova Scotia-based clinical stage vaccine company, recently announced that it has altered its financing plans and will pursue a private placement of its securities instead of a public marketed option.
The private placement sets a unit price of $0.33 for a total of more than six million units. Gross proceeds are expected to reach $2 million. The offer is scheduled to end February 28. Immunovaccine said that it has received a lead order and commitments for participation from the company's directors.
Each unit consists of a common share and a warrant for the purchase of one-half of a common share. Every full warrant will have an exercise price of $0.50. which will then be considered exercisable for a period of two years following the private placement's closing date.
"Pursuing a private placement is in the best interest of the existing shareholders and new investors and therefore would be more beneficial to Immunovaccine than a public offering and so we have modified our financing plans," Immunovaccine CEO John Trizzino said.
The company announced that it will use the proceeds from the financing scheme to support preclinical research and development for vaccines to treat respiratory syncytial virus, malaria and anthrax. Immunovaccine said it will fund a Phase I clinical trial and ongoing development and Phase II preparation of its clinical stage cancer vaccine candidate DPX-Survivac.