BriaCell Therapeutics Announces Proposed Public Offering

Rhea-AI Summary

BriaCell Therapeutics (Nasdaq: BCTX) has announced plans for an underwritten public offering of common shares and warrants. ThinkEquity will serve as the sole book-running manager for the offering. The company intends to use the net proceeds for working capital requirements, general corporate purposes, and advancing business objectives.

The securities will be offered through a shelf registration statement on Form S-3 filed with the SEC. The offering's completion, size, and terms are subject to market conditions. A preliminary prospectus supplement and accompanying prospectus will be filed with the SEC.

Positive

• None.

Negative

• Potential dilution of existing shareholders through new share issuance
• Uncertain terms and timing of the offering indicating market dependency
• No specified amount of capital to be raised

Insights

Financial Analyst

This public offering announcement signals potential dilution for existing shareholders of BriaCell Therapeutics. For a company with a relatively small market cap of $39.3 million, raising additional capital through share and warrant issuance will likely put downward pressure on the stock price. While the exact terms aren't disclosed, the combination of shares and warrants typically indicates a significant discount to market price to attract investors. The timing and structure suggest urgent capital needs, though the stated use for working capital and business objectives is quite general. The engagement of ThinkEquity as sole book-runner, rather than a larger investment bank, may impact the offering's reach and pricing. This financing will be critical for the company's operations but comes at a cost to shareholder value.

Biotech Research Analyst

As a clinical-stage biotech company, BriaCell's need for capital is typical of the industry, where drug development requires substantial ongoing investment. The company's focus on novel immunotherapies for cancer treatment represents a promising but capital-intensive field. Without specific details on their clinical pipeline progress or burn rate, this offering suggests they need additional runway to advance their programs. The timing, coming near year-end, might indicate a strategic move to strengthen the balance sheet before potential clinical milestones in 2024. However, the lack of detail about specific program funding raises questions about the immediate catalysts driving this financing decision.

PHILADELPHIA and VANCOUVER, British Columbia, Dec. 11, 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 that it intends to offer to sell common shares and warrants in an underwritten public offering. All of the common shares and warrants are to be sold by the Company. The offering is subject to market conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

ThinkEquity is acting as the sole book-running manager for the offering.

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

The securities will be offered and sold 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 will be made only by means of a written prospectus. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been or will be filed with the SEC on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of 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, including those related to our ability to close the underwritten public offering and the use of proceeds, 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 “Risk Factors” in the Company’s most recent annual report, and 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

What is the purpose of BriaCell's (BCTX) December 2024 public offering?

BriaCell's public offering aims to raise funds for working capital requirements, general corporate purposes, and advancement of business objectives.

Who is the underwriter for BriaCell's (BCTX) 2024 public offering?

ThinkEquity is acting as the sole book-running manager for BriaCell's public offering.

What securities are being offered in BriaCell's (BCTX) public offering?

BriaCell is offering common shares and warrants in an underwritten public offering.

How will the BCTX public offering affect existing shareholders?

The offering will likely result in dilution of existing shareholders' ownership due to the issuance of new common shares.

What is the registration status of BCTX's December 2024 offering?

The offering is registered through a Form S-3 shelf registration statement (File No. 333-276650), which was declared effective on January 31, 2024.