CEL-SCI Corporation (NYSEMKT:CVM) shares were down 4.78% to $0.116 on Monday and unchanged in after-hours trading. Share prices have been trading in a 52-week range of $0.06 to $0.59. The company has a market cap of $30.30 million at 216.48 million shares outstanding.
CEL-SCI Corporation announced that it has entered into a definitive agreement with one institutional investor for an offering of shares of common stock with gross proceeds of approximately $1.51 million in a registered direct offering. This is expected to take place and close on May 3, 2017.
With this offering, CEL-SCI Corporation will issue approximately 13,199,000 registered shares of common stock at a purchase price of $0.115 per share. In a private placement, it will issue warrants to purchase up to 9,899,250 shares of its common stock.
CEL-SCI Corporation plans on using the proceeds from this offering to further the Phase 3 clinical study and general corporate purposes. In March, the company shed some light on the FDA partial clinical hold on Phase 3 head and neck cancer study involving its investigational drug Multikine. Under this clinical hold, atients currently receiving study treatments can continue to receive treatment at the discretion of their physicians and with their consent, and patients already enrolled in the study will continue to be followed.
Since then, CEL-SCI Corporation had a Type A face-to-face meeting with the FDA to have an open and frank discussion of the clinical hold issues raised. “It is our belief that addressing the Action Items listed above will support a favorable decision by the FDA to lift the partial clinical hold. While we think that we have understood the Action Items, it is possible that we have not understood all issues involved. All of our work is subject to the FDA’s review of our submission upon its completion and may or may not result in the lifting of the partial clinical hold,” the statement concluded.
CEL-SCI Corporation is a company that is engaged in the research and development at developing the treatment of cancer and other diseases by using the immune system. It is focused on activating the immune system to fight cancer and infectious diseases.
The company operates through the segment of research and development of certain drugs and vaccines, particularly on the development of Multikine (Leukocyte Interleukin, Injection), an investigational immunotherapy under development for treatment of certain head and neck cancers, and anal warts or cervical dysplasia in human immunodeficiency virus and human papillomavirus co-infected patients and Ligand Epitope Antigen Presentation System (L.E.A.P.S.) technology, with over two investigational therapies, LEAPS-H1N1-DC, a product candidate under development for treatment of pandemic influenza in hospitalized patients, and CEL-2000 and CEL-4000, vaccine product candidates under development for treatment of rheumatoid arthritis.