AIM ImmunoTech Announces Pricing of $2.0 Million Registered Direct Offering

Rhea-AI Summary

AIM ImmunoTech announced a $2 million registered direct offering with a single institutional investor. The deal includes the purchase of 5,640,958 shares of common stock at $0.363 per share and unregistered Class A and Class B warrants to buy an additional 5,640,958 shares each. The Class A warrants expire 18 months from issuance, while Class B warrants expire in five years. Maxim Group acts as the sole placement agent. The gross proceeds are around $2 million before fees and expenses. The offering is made under a shelf registration statement effective since February 4, 2022.

Positive

• Raised $2 million in gross proceeds.
• Engaged a single institutional investor, indicating significant interest.
• Concurrent private placement offers potential for future funding.
• Maxim Group acting as sole placement agent adds credibility.

Negative

• Issue price of $0.363 per share may indicate undervaluation.
• Potential dilution with issuance of 5,640,958 new shares.
• Warrants could further dilute existing shareholders.
• Gross proceeds are specified before fees and expenses, reducing net gain.

Financial Analyst

The announcement of a $2.0 million registered direct offering by AIM ImmunoTech is noteworthy for several reasons. Firstly, the offering price of $0.363 per share represents a discount from the current market value, which may indicate a need for liquidity or capital for ongoing operations. The use of both Class A and Class B warrants, with differing expiration dates, provides flexibility for investors and allows the company to potentially raise further funds in the future if the stock price appreciates.

In the short term, this capital infusion will provide AIM ImmunoTech with necessary funds to support its operations, but it also dilutes existing shareholders’ value given the addition of over 11 million potential new shares. Investors will need to weigh the benefits of the cash influx against the dilution.

The involvement of Maxim Group LLC as the sole placement agent adds a layer of credibility to the transaction. However, the company's reliance on institutional investment rather than a broader retail investor base may suggest challenges in market confidence.

Market Research Analyst

The strategic choice of a registered direct offering coupled with a private placement underscores AIM ImmunoTech's need for immediate funding while keeping future funding options open. The dual warrants structure, exercisable at the same price as the current offering, indicates the company's expectation of potential stock price growth within the next six months to five years. The Class A warrants, expiring in 18 months, are likely designed to be exercised sooner, providing a near-term capital boost, while the Class B warrants extend a longer-term capital raising horizon.

For retail investors, it's important to note the registration statement under which these shares are offered. The Form S-3 registration allows for a simpler and faster process to raise funds, suggesting that AIM ImmunoTech is preparing for swift capital needs, possibly for ongoing clinical trials or operational expansions. The reliance on shelf registration means the company has been proactive about funding flexibility.

Investors should monitor the company’s upcoming SEC filings closely, as the prospectus supplement will offer more insights into the use of these funds and potential future developments.

OCALA, Fla., May 31, 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 5,640,958 shares of common stock in a registered direct offering at a purchase price of $0.363 per share. In a concurrent private placement, the Company also agreed to issue unregistered Class A warrants to purchase up to an aggregate of 5,640,958 shares of common stock and, unregistered Class B warrants to purchase up to an aggregate of 5,640,958 shares of common stock. The Class A and Class B warrants will each have an exercise price of $0.363, will be exercisable six months from the date of issuance and, in the case of the Class A warrants, will expire on the eighteen-month anniversary from the initial exercise date, and in the case of the Class B 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 $2.0 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.

Investor Contact:

JTC Team, LLC
Jenene Thomas
(833) 475-8247
AIM@jtcir.com

FAQ

What is the stock symbol for AIM ImmunoTech?

The stock symbol for AIM ImmunoTech is AIM.

How much did AIM ImmunoTech raise in the direct offering?

AIM ImmunoTech raised approximately $2 million in gross proceeds.

What is the purchase price per share in AIM's registered direct offering?

The purchase price per share is $0.363.

When will AIM's Class A and Class B warrants expire?

Class A warrants will expire 18 months from issuance, and Class B warrants will expire five years from issuance.

Who is the placement agent for AIM's direct offering?

Maxim Group is the sole placement agent for the offering.

What is the total number of shares offered in AIM's direct offering?

AIM offered 5,640,958 shares of common stock in the direct offering.

How can investors obtain the prospectus for AIM's direct offering?

Investors can obtain the prospectus from the SEC's website or from Maxim Group