Genocea Announces Private Placement Financing of Up to $80 Million

Rhea-AI Summary

Genocea Biosciences (NASDAQ:GNCA) announced a private placement to raise approximately $80 million through the sale of 21.4 million shares and 12.2 million pre-funded warrants. The offering, led by a public investment fund specializing in life sciences, will be used to fund clinical development of its neoantigen vaccine GEN-009 and cell therapy GEN-011. The warrants have an exercise price of $2.25 per share and will be exercisable upon issuance. Closing is expected by July 24, 2020, subject to customary conditions.

Positive

• Raised approximately $80 million to fund clinical development and working capital.
• Private placement led by a reputable investment fund, indicating confidence in the company's strategy.

Negative

• Warrants issued at an exercise price of $2.25 could dilute existing shareholder value.

CAMBRIDGE, Mass., July 22, 2020 (GLOBE NEWSWIRE) -- Genocea Biosciences, Inc. (NASDAQ:GNCA), a biopharmaceutical company developing personalized cancer immunotherapies, today announced that it has entered into a private placement led by an undisclosed leading U.S. public investment fund specializing in life sciences as well as certain existing and new investors providing for the purchase of up to approximately $80 million of its common stock and warrants to purchase shares of Genocea common stock (before deducting fees to the placement agent and other offering expenses payable by Genocea). Genocea will offer 21.4 million shares of common stock and 12.2 million pre-funded warrants to purchase common stock, along with accompanying warrants to purchase one share of common stock for each share of common stock or pre-funded warrant purchased by an investor. The warrants will be exercisable immediately upon issuance, in whole or in part, at an exercise price of $2.25 per share and will have a 4-year term. The closing of the private placement is expected to occur on or about July 24, 2020, subject to customary closing conditions.

Genocea intends to use the net proceeds from this private placement to fund continued clinical and program development of its neoantigen vaccine GEN-009 and its neoantigen cell therapy GEN-011, as well as for working capital and other general corporate purposes.

Stifel is acting as sole placement agent for the private placement.  Brookline Capital Markets, a division of Arcadia Securities, LLC is serving as financial advisor to the Company in connection with the private placement.

The securities sold in the offering have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Genocea has agreed to file a resale registration statement with the Securities and Exchange Commission (the “SEC”) within 30 days of the closing of the offering for purposes of registering the resale of the shares of common stock issued or issuable in connection with the offering.

This notice is issued pursuant to Rule 135c under the Securities Act and does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state. Any offering of the securities under the resale registration statement will only be by means of a prospectus.

About Genocea Biosciences, Inc.
Genocea’s mission is to conquer cancer by developing personalized cancer immunotherapies in multiple tumor types.  Our unique ATLAS™ platform comprehensively profiles each patient’s T cell responses to potential targets, or antigens, on the tumor. ATLAS enables us to optimize the neoantigens for inclusion in our immunotherapies and exclude inhibitory antigens that can exert an immunosuppressive effect. We are advancing two ATLAS-enabled programs: GEN-009, our neoantigen vaccine for which we are conducting a Phase 1/2a clinical trial and expect preliminary clinical results in the third quarter of 2020, and GEN-011, our neoantigen-specific cell therapy using T cells derived from peripheral blood for which we expect to conduct a Phase 1/2a clinical trial.

Genocea Forward-Looking Statement
This press release includes forward-looking statements, including statements relating to immunogenicity-related clinical trial results, the proposed offering terms and the use of the net proceeds therefrom, within the meaning of the Private Securities Litigation Reform Act. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Genocea cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Applicable risks and uncertainties include those identified under the heading "Risk Factors" included in Genocea's Annual Report on Form 10-K for the year ended December 31, 2019 and any subsequent SEC filings. These forward-looking statements speak only as of the date of this press release and Genocea assumes no duty to update forward-looking statements.

Investor Contact:
Dan Ferry
617-430-7576
daniel@lifesciadvisors.com

FAQ

What is the purpose of Genocea's $80 million private placement?

Genocea intends to use the proceeds for clinical development of its neoantigen vaccine GEN-009 and cell therapy GEN-011, along with general corporate purposes.

Who led the private placement for Genocea (GNCA)?

The private placement was led by an undisclosed leading U.S. public investment fund specializing in life sciences.

When is the expected closing date for Genocea's private placement?

The closing of the private placement is expected on or around July 24, 2020.

What are the exercise terms for the warrants issued by Genocea?

The warrants have an exercise price of $2.25 per share and are exercisable immediately upon issuance.

What is the stock symbol for Genocea?

The stock symbol for Genocea is GNCA.