BriaCell Therapeutics Announces Closing of $5 Million Offering

Rhea-AI Summary

BriaCell Therapeutics Corp. (Nasdaq: BCTX, BCTXW) (TSX: BCT) has closed its previously announced best-efforts offering of 5,128,500 common shares and warrants. The offering was 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 are immediately exercisable for five years. The offering raised approximately $5 million in gross proceeds.

The company plans to use the net proceeds for working capital requirements, general corporate purposes, and advancing business objectives. ThinkEquity acted as the sole placement agent for the offering. The securities were offered under BriaCell's effective shelf registration statement on Form S-3, with a prospectus supplement and prospectus filed with the SEC.

Positive

• Raised approximately $5 million in gross proceeds
• Warrants are immediately exercisable for a five-year period
• Offering priced at-the-market under Nasdaq rules

Negative

• Potential dilution of existing shareholders due to new share issuance
• Warrants may lead to further dilution if exercised

Insights

Financial Analyst

BriaCell Therapeutics has closed a $5 million offering, selling 5,128,500 common shares and warrants at $0.975 per unit. The warrants, exercisable at $0.85 per share for five years, provide additional potential capital. This capital raise is important for BriaCell, given its small market cap of $24.87 million.

The pricing "at-the-market" suggests current market conditions weren't favorable for a premium offering. The immediate dilution is significant, representing about 20% of the company's market cap. However, the cash infusion strengthens BriaCell's balance sheet, potentially extending its runway for clinical development.

Investors should note that while this offering provides necessary capital, it also signals the company's need for funds, which may indicate financial pressure. The use of proceeds for "working capital" and "general corporate purposes" is broad, offering insight into specific strategic initiatives. This funding round may be viewed as a double-edged sword: vital for operations but dilutive to existing shareholders.

Biotechnology Research Analyst

BriaCell's $5 million raise is a critical step for advancing its novel immunotherapy pipeline. As a clinical-stage biotech, cash burn is expected and this infusion could accelerate the development of their cancer care transforming therapies.

The offering structure, combining shares with warrants, is common in biotech financing. The $0.85 warrant exercise price, below the offering price, suggests potential for future capital if the stock price appreciates, incentivizing current investors.

However, the broad use of proceeds statement doesn't provide clarity on specific clinical milestones or R&D focus areas. For a company with a $24.87 million market cap, more targeted use of funds would be reassuring. Investors should monitor upcoming announcements for details on how this capital will drive BriaCell's immunotherapy development and potentially enhance its competitive position in the oncology space.

PHILADELPHIA and VANCOUVER, British Columbia, Oct. 02, 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 closing of its previously announced 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 have an exercise price of $0.85 per share and are immediately exercisable upon issuance for a period of five years following the date of issuance. Total gross proceeds from the offering, before deducting the placement agent’s fees and other offering expenses, are approximately $5 million.

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 acted as sole placement agent for the offering.

The securities were offered and sold pursuant to the Company’s currently effective 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 was made by means of a prospectus supplement and prospectus which have been filed with the SEC and available on the SEC’s website at www.sec.gov. You should read the applicable prospectus supplement and prospectus for more complete information about the Company and the offering. You may obtain these documents free of charge by visiting the SEC website at www.sec.gov. Alternatively, you may obtain copies by contacting ThinkEquity, 17 State Street, 41st 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. 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

How much did BriaCell Therapeutics (BCTX) raise in its recent offering?

BriaCell Therapeutics (BCTX) raised approximately $5 million in gross proceeds from its recent offering of common shares and warrants.

What was the pricing of BriaCell Therapeutics' (BCTX) offering on October 2, 2024?

BriaCell Therapeutics' (BCTX) offering on October 2, 2024, was priced at $0.975 per share and associated warrant, at-the-market under Nasdaq rules.

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

The warrants issued by BriaCell Therapeutics (BCTX) have an exercise price of $0.85 per share and are 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 (BCTX) intends to use the net proceeds for working capital requirements, general corporate purposes, and the advancement of business objectives.