Aethlon Medical Announces Pricing of $4.7 Million Public Offering
Aethlon Medical (Nasdaq: AEMD), a therapeutic company specializing in cancer and infectious disease treatments, announced a public offering priced at $0.58 per share. This includes 8,100,000 common shares, Class A and Class B warrants to purchase up to 8,100,000 shares each. The Class A warrants expire in five years and Class B in one year. Gross proceeds are expected to be $4.7 million before expenses, with funds directed towards clinical trials, R&D, capital expenditures, and working capital. Closing is anticipated by May 17, 2024. Maxim Group is the exclusive placement agent.
- Aethlon Medical will raise approximately $4.7 million in gross proceeds.
- The offering includes potential for future capital through warrant exercises.
- Funds will support clinical trials, R&D, and corporate growth.
- The share price of $0.58 reflects a low valuation.
- Potential shareholder dilution with 8,100,000 new shares issued.
- Class B warrants have a short lifespan, expiring in one year.
The announcement by Aethlon Medical regarding their $4.7 million public offering is a significant financial development for the company, especially given its focus on cancer and infectious disease treatments. The pricing at
In the short-term, this infusion of capital can stabilize the company’s financial standing, allowing it to advance its projects without immediate financial strain. From a long-term perspective, successful utilization of these funds in clinical trials and R&D can potentially lead to significant developments in their therapeutic pipeline, potentially increasing the company's value. However, investors should be aware of the dilution effect this offering will have on existing shares, which could impact the stock price negatively in the short term. Additionally, the exercise prices and terms of the warrants are critical, as they present an avenue for future equity dilution if exercised.
It’s also worth noting that the offering is carried out under a well-defined regulatory framework, with the SEC having declared the registration effective. This compliance adds a layer of confidence regarding the legitimacy and procedural correctness of the offering.
Overall, while the offering presents potential benefits for the company's operational and strategic initiatives, it does come with inherent risks associated with stock dilution and dependency on successful execution of their plans.
Maxim Group LLC is acting as the exclusive placement agent for the offering.
The gross proceeds from the offering, before deducting the placement agent's fees and other offering expenses, are expected to be approximately
The securities described above are being offered pursuant to a registration statement on Form S-1, as amended (File No. 333-278188), which was declared effective by the Securities and Exchange Commission (the "SEC") on May 15, 2024. The offering is being made only by means of a prospectus which forms a part of the effective registration statement. A preliminary prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC's website at www.sec.gov and may also be obtained by contacting Maxim Group LLC at 300 Park Avenue, 16th Floor,
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Aethlon and the Hemopurifier®
Aethlon Medical is a medical therapeutic company focused on developing the Hemopurifier, a clinical stage immunotherapeutic device which is designed to combat cancer and life-threatening viral infections and for use in organ transplantation. In human studies, the Hemopurifier has demonstrated the removal of life-threatening viruses and in pre-clinical studies, the Hemopurifier has demonstrated the removal of harmful exosomes from biological fluids, utilizing its proprietary lectin-based technology. This action has potential applications in cancer, where exosomes may promote immune suppression and metastasis, and in life-threatening infectious diseases. The Hemopurifier is a
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties, including statements regarding the size of the offering, the anticipated timing of and the Company's ability to close the offering, and the use of the net proceeds from the offering. Words such as "anticipate," "expect," "intend," "may," "will," "potentially" or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements necessarily contain these identifying words. These forward-looking statements are based upon the Company's current expectations, estimates and projections about the Company's business, which are subject to a number of known and unknown risks, and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, including, without limitation, risks associated with market conditions and risks related to the Company's business. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. Additional factors that could cause results to differ materially from those anticipated in forward-looking statements can be found under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended March 31, 2023, and in the Company's other filings with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except as may be required by law, the Company does not intend, nor does it undertake any duty, to update this information to reflect future events or circumstances.
Company Contact:
Jim Frakes
Interim Chief Executive Officer and Chief Financial Officer
Aethlon Medical, Inc.
Jfrakes@aethlonmedical.com
Investor Contact:
Susan Noonan
S.A. Noonan Communications, LLC
susan@sanoonan.com
917-513-5303
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SOURCE Aethlon Medical, Inc.
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