Hemispherx Biopharma Inc (NYSEAMERICAN:HEB) said Wednesday that it expects gross proceeds of $5.3 million from its recently expired rights offering.
Upon closing, the immune-pharma research company said shares and warrants will be distributed to holders of rights who exercised them and paid the subscription price in full.
Each right entitled the holder to purchase one unit, at a subscription price of $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 shares of common stock at a conversion price of $0.20 per share as well as 5,000 warrants to purchase Hemispherx's common stock with an exercise price of $0.20 per share.
READ: Hemispherx Biopharma gets green light from Dutch health regulators to extend access program for Ampligen to pancreatic cancer patient
Shares of Hemispherx slipped $0.01 to $0.17 in Wednesday’s premarket trading.
The closing of the offering is expected on or about Friday, March 8, according to the Ocala, Florida, company. The warrants will be exercisable for five years after the date of issuance.
Hemispherx engaged Maxim Group LLC and Ascendiant Capital Markets LLC as dealer-managers. The rights offering expired Tuesday, and the rights are no longer exercisable, according to Hemispherx.
Last month, the company said that its early-access program at the Erasmus Medical Center in the Netherlands, which uses its flagship drug Ampligen for the treatment of pancreatic cancer, had been extended.
Contact Dennis Fitzgerald at [email protected]