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Hemispherx Biopharma updates terms of $8 million rights offering, says senior management is participating

Last updated: 09:57 27 Feb 2019 EST, First published: 09:45 27 Feb 2019 EST

cancerous cells
Hemispherx’s flagship product is the Argentina-approved Ampligen, which treats chronic fatigue syndrome and cancer

Hemispherx Biopharma Inc (NYSE American: HEB) said Wednesday that it has adjusted certain pricing information for its announced $8 million rights offering, which will be used to fund trials for its anti-cancer agent Ampligen.

The pricing remains $1,000 per unit, consisting of one share of Series B convertible preferred stock with a stated value of $1,000 (and immediately convertible into Hemispherx’s common stock) and warrants to purchase Hemispherx’s common stock.

But the Series B convertible preferred stock conversion price will now be $0.20 and each unit will now consist of 5,000 warrants to purchase Hemispherx’s common stock at an adjusted exercise price of $0.20. The warrants will be exercisable for five years after the date of issuance.

READ: Hemispherx Biopharma's cancer drug Ampligen to be used in new oncology study

All of the members of the Ocala, Florida-based company’s senior management and board of directors are planning to participate in the rights offering.

The subscription period for the rights offering expires at 5 pm (ET) on March 1, 2019, unless extended by the company.

Maxim Group and Ascendiant Capital Markets LLC have been hired as dealer-managers in the rights offering.

READ: Hemispherx Biopharma started with a Buy rating at Ascendiant Capital Markets

Hemispherx’s flagship products include the Argentina-approved Ampligen, which treats chronic fatigue syndrome and cancer, and the FDA-approved drug Alferon N Injection, a treatment for genital warts.

Hemispherx shares slipped by 2 cents to US$0.18 in morning trade on Wednesday.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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