BriaCell Therapeutics Announces $5 Million Offering

Rhea-AI Summary

BriaCell Therapeutics Corp. (Nasdaq: BCTX, BCTXW) (TSX: BCT) has announced a $5 million offering of 5,128,500 common shares and warrants. The offering is priced at $0.975 per share and associated warrant, at-the-market under Nasdaq rules. The warrants have an exercise price of $0.85 per share and will be immediately exercisable for five years upon issuance.

The offering is expected to close on October 2, 2024, subject to customary closing conditions. ThinkEquity is acting as the sole placement agent. BriaCell intends to use the net proceeds for working capital requirements, general corporate purposes, and advancing business objectives. The offering is made pursuant to a shelf registration statement on Form S-3 filed with the SEC.

Positive

• Raised $5 million in capital through share and warrant offering
• Warrants immediately exercisable, potentially providing additional future capital

Negative

• Potential dilution of existing shareholders due to new share issuance
• Offering priced below current market value, indicating possible downward pressure on stock price

Insights

Financial Analyst

BriaCell Therapeutics' $5 million offering, priced at-the-market, is a significant move for this clinical-stage biotech company. The offering of 5,128,500 common shares and warrants at $0.975 per unit is designed to bolster their working capital and advance business objectives. This capital raise, while dilutive to existing shareholders, provides essential funding for the company's immunotherapy development pipeline. The inclusion of warrants with a $0.85 exercise price and 5-year term offers potential for additional future funding if exercised. However, the pricing below the current market value suggests some pressure on the stock. The company's reliance on the TSX exemption for interlisted issuers on Nasdaq indicates a focus on U.S. market dynamics. While this funding supports ongoing operations, investors should closely monitor how effectively BriaCell utilizes this capital to advance its clinical programs and potentially reach key milestones in cancer immunotherapy development.

Biotechnology Research Analyst

This offering by BriaCell Therapeutics is a critical funding event for the company's immunotherapy pipeline. As a clinical-stage biotech, regular capital infusions are essential to support ongoing research and development efforts. The $5 million raised, while modest in the biotech sector, could be pivotal for advancing specific projects or extending the company's operational runway. The at-the-market pricing suggests a realistic valuation approach, but may also indicate investor enthusiasm. The warrant structure provides a potential for future capital influx if the company's prospects improve, incentivizing current investors. However, the dilutive effect and the pricing below market value may concern existing shareholders. Investors should focus on BriaCell's upcoming milestones in cancer immunotherapy development and how this funding will be allocated to potentially value-creating activities. The success of this offering in supporting BriaCell's progress towards clinical trial advancements or regulatory milestones will be important for the company's future prospects and valuation.

Priced At-the-Market Under Nasdaq Rules

PHILADELPHIA and VANCOUVER, British Columbia, Oct. 01, 2024 (GLOBE NEWSWIRE) -- BriaCell Therapeutics Corp. (Nasdaq: BCTX, BCTXW) (TSX: BCT) (“BriaCell” or the “Company”), a clinical-stage biotechnology company that develops novel immunotherapies to transform cancer care, today announced the pricing of a best-efforts offering of 5,128,500 common shares and warrants to purchase up to 5,128,500 common shares at a combined offering price of $0.975 per share and associated warrant, priced at-the-market under Nasdaq rules. The warrants will have an exercise price of $0.85 per share and will be immediately exercisable upon issuance for a period of five years following the date of issuance. All of the common shares and associated warrants in the offering are being offered by the Company. Total gross proceeds from the offering, before deducting the placement agent’s fees and other offering expenses, are expected to be approximately $5 million. The offering is expected to close on October 2, 2024, subject to satisfaction of customary closing conditions. The Company is relying upon the exemption set forth in Section 602.1 of the TSX Company Manual, which provides that the TSX will not apply its standards to certain transactions involving eligible interlisted issuers on a recognized exchange, such as Nasdaq.

The Company intends to use the net proceeds from the offering for working capital requirements, general corporate purposes, and the advancement of business objectives.

ThinkEquity is acting as sole placement agent for the offering.

The securities described above are being offered and sold by the Company pursuant to a shelf registration statement on Form S-3 (File No. 333-276650), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on January 22, 2024 and declared effective on January 31, 2024. The offering is being made only by means of a written prospectus. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and can be accessed for free on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About BriaCell Therapeutics Corp.

BriaCell is a clinical-stage biotechnology company that develops novel immunotherapies to transform cancer care. More information is available at https://briacell.com/.

Forward-Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on BriaCell’s current expectations and are subject to inherent uncertainties, risks, and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully under the heading “Risks and Uncertainties” in the Company’s most recent Management’s Discussion and Analysis, under the heading “Risk Factors” in the Company’s most recent Annual Information Form, and under “Risks and Uncertainties” in the Company’s other filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, all of which are available under the Company’s profiles on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. There can be no assurance that BriaCell will be able to complete the offering on the anticipated terms, or at all.  Forward-looking statements contained in this announcement are made as of this date, and BriaCell Therapeutics Corp. undertakes no duty to update such information except as required under applicable law.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

Company Contact:
William V. Williams, MD
President & CEO
1-888-485-6340
info@briacell.com

Media Relations:
Jules Abraham
CORE IR
julesa@coreir.com

Investor Relations Contact:
CORE IR
investors@briacell.com

FAQ

What is the pricing of BriaCell Therapeutics' (BCTX) recent offering?

BriaCell Therapeutics' recent offering is priced at $0.975 per share and associated warrant, at-the-market under Nasdaq rules.

How much capital is BriaCell Therapeutics (BCTX) raising in its October 2024 offering?

BriaCell Therapeutics is raising approximately $5 million in gross proceeds through its October 2024 offering.

What are the terms of the warrants in BriaCell Therapeutics' (BCTX) October 2024 offering?

The warrants have an exercise price of $0.85 per share and will be immediately exercisable for a period of five years following the date of issuance.

How does BriaCell Therapeutics (BCTX) plan to use the proceeds from its October 2024 offering?

BriaCell Therapeutics intends to use the net proceeds for working capital requirements, general corporate purposes, and the advancement of business objectives.