AIM ImmunoTech Announces Pricing of $1.26 Million Registered Direct Offering

Rhea-AI Summary

AIM ImmunoTech Inc. (NYSE American: AIM) has announced a $1.26 million registered direct offering of common stock and a concurrent private placement of warrants. The company will sell 4,653,036 shares at $0.27 per share to a single institutional investor. Additionally, AIM will issue unregistered Class C and Class D warrants to purchase up to 4,653,036 shares each, with an exercise price of $0.28. The Class C warrants expire 18 months after the initial exercise date, while Class D warrants expire after 5 years. Maxim Group is acting as the sole placement agent. The offering is made under a shelf registration statement, and a prospectus supplement will be filed with the SEC.

Positive

• Secured $1.26 million in gross proceeds through a registered direct offering
• Additional potential funding through warrant exercises if executed
• Engagement with an institutional investor, potentially indicating confidence in the company

Negative

• Potential dilution of existing shareholders' equity
• Low offering price of $0.27 per share, possibly indicating weak market perception
• Additional dilution possible if warrants are exercised in the future

Insights

Financial Analyst

AIM ImmunoTech's $1.26 million registered direct offering is a significant capital raise for a micro-cap company with a market cap of only $15.3 million. This financing, while dilutive, provides important working capital but at a considerable cost:

• The offering price of $0.27 per share represents a substantial discount to the current market price, indicating investor hesitancy.
• The issuance of warrants with an exercise price of $0.28 could lead to further dilution if exercised.
• The total potential dilution, including warrant exercises, could exceed 50% of current shares outstanding.

While the cash infusion may help fund operations in the short term, it comes at a high cost to existing shareholders. The company's ability to utilize this capital effectively for its immunotherapy programs will be important for long-term value creation. Investors should closely monitor cash burn rates and clinical progress to assess the impact of this financing on AIM's future prospects.

OCALA, Fla., Sept. 30, 2024 (GLOBE NEWSWIRE) -- AIM ImmunoTech Inc. (NYSE American: AIM) (“AIM” or the “Company”) today announced that it has entered into a securities purchase agreement with a single institutional investor to purchase 4,653,036 shares of common stock in a registered direct offering at a purchase price of $0.27 per share. In a concurrent private placement, the Company also agreed to issue unregistered Class C warrants to purchase up to an aggregate of 4,653,036 shares of common stock and, unregistered Class D warrants to purchase up to an aggregate of 4,653,036 shares of common stock. The Class C and Class D warrants will each have an exercise price of $0.28, will be exercisable six months from the date of issuance and, in the case of the Class C warrants, will expire on the eighteen-month anniversary from the initial exercise date, and in the case of the Class D warrants, will expire on the five-year anniversary from the initial exercise date.

The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately $1.26 million before deducting the placement agent’s fees and other estimated offering expenses payable by the Company.

Maxim Group LLC is acting as the sole placement agent in connection with the offering.

The shares of common stock are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-262280), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on February 4, 2022. The offering of the shares of common stock is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A prospectus supplement relating to the shares of common stock will be filed by the Company with the SEC. When available, copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC’s website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, at (212) 895-3745.

The warrants to be issued in the concurrent private placement and the shares issuable upon exercise of such warrants were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws. Accordingly, the warrants and the shares of common stock underlying the warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.

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 AIM ImmunoTech Inc.

AIM ImmunoTech Inc. is an immuno-pharma company focused on the research and development of therapeutics to treat multiple types of cancers, immune disorders and viral diseases, including COVID-19. The Company’s lead product is a first-in-class investigational drug called Ampligen® (rintatolimod), a dsRNA and highly selective TLR3 agonist immuno-modulator with broad spectrum activity in clinical trials for globally important cancers, viral diseases and disorders of the immune system.

For more information, please visit aimimmuno.com and connect with the Company on X, LinkedIn, and Facebook.

Cautionary Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “continue,” “believe,” “potential,” “upcoming” and other variations thereon and similar expressions (as well as other words or expressions referencing future events or circumstances) are intended to identify forward-looking statements. Many of these forward-looking statements involve a number of risks and uncertainties. The Company urges investors to consider specifically the various risk factors identified in its most recent Form 10-K, and any risk factors or cautionary statements included in any subsequent Form 10-Q or Form 8-K, filed with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Among other things, for those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA. The Company does not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof.

FAQ

What is the size and price of AIM ImmunoTech's (AIM) recent stock offering?

AIM ImmunoTech (AIM) is offering 4,653,036 shares of common stock at $0.27 per share in a registered direct offering, aiming to raise approximately $1.26 million in gross proceeds.

What types of warrants are included in AIM's concurrent private placement?

AIM is issuing unregistered Class C and Class D warrants, each to purchase up to 4,653,036 shares of common stock at an exercise price of $0.28 per share.

When can the warrants be exercised and when do they expire for AIM's offering?

Both Class C and D warrants can be exercised six months after issuance. Class C warrants expire 18 months after the initial exercise date, while Class D warrants expire 5 years after the initial exercise date.

Who is the placement agent for AIM ImmunoTech's (AIM) offering?

Maxim Group is acting as the sole placement agent for AIM ImmunoTech's registered direct offering and concurrent private placement.