INmune Bio Announces $13.0 Million Registered Direct Offering

Rhea-AI Summary

INmune Bio Inc. (Nasdaq: INMB) has announced a $13.0 million registered direct offering of common stock and warrants. The company will sell 2,341,260 shares of common stock and warrants to purchase an additional 2,341,260 shares. The combined purchase price is $5.50 per share and warrant for institutional investors and $6.50 for company insiders. Warrants will be exercisable after six months at $6.40 per share with a five-year expiration. The offering is expected to close around September 16, 2024. Proceeds will be used for working capital and general corporate purposes. A.G.P./Alliance Global Partners is acting as the sole placement agent for this offering, which is made pursuant to an effective shelf registration statement.

Positive

• Raised $13.0 million in gross proceeds to strengthen the company's financial position
• Participation from both new and existing institutional investors, as well as company insiders, indicating confidence in the company
• Warrants provide potential for additional future funding if exercised

Negative

• Potential dilution of existing shareholders' ownership
• Warrants may create downward pressure on stock price if exercised in the future
• Offering price represents a discount to current market price, potentially impacting short-term stock performance

Financial Analyst

INmune Bio's $13 million registered direct offering is a significant capital raise that will bolster the company's financial position. The offering structure, combining common stock and warrants at $5.50 per unit for institutional investors and $6.50 for insiders, indicates a strategic approach to fundraising. The 18.18% premium for insiders' participation demonstrates confidence in the company's future.

The warrants' exercise price of $6.40, 16.36% above the institutional investor price, suggests potential upside expectations. However, the six-month exercise delay and five-year expiration provide a balanced approach to dilution management. The accelerated termination clause adds flexibility for the company to potentially capture additional capital sooner if certain conditions are met.

While the offering will dilute existing shareholders, it provides important working capital for INmune Bio's clinical-stage programs. Investors should monitor the company's burn rate and progress in its inflammation and immunology pipeline to assess the long-term impact of this financing.

Biotech Industry Analyst

This capital raise is important for INmune Bio, a clinical-stage biotech focusing on harnessing the innate immune system. The $13 million infusion will likely extend the company's runway for its ongoing clinical trials and research programs. However, it's important to note that clinical-stage biotechs often require substantial capital and this raise may only provide a extension of operations.

The participation of insiders at a premium price is a positive signal, suggesting management's confidence in the company's prospects. However, investors should be cautious as the company has not provided specific allocation plans for the funds. Key factors to watch include:

• Progress of INmune Bio's clinical pipeline
• Burn rate and cash runway post-offering
• Potential for future dilutive events

While this offering provides necessary capital, it's important for INmune Bio to demonstrate clinical progress and move towards value-creating milestones to justify this dilution and potentially attract future investments on more favorable terms.

Boca Raton, Florida, Sept. 13, 2024 (GLOBE NEWSWIRE) -- INmune Bio Inc. (Nasdaq: INMB) (the “Company” or “INmune Bio”), a clinical-stage inflammation and immunology company focused on developing treatments that harness a patient’s innate immune system to fight disease, today announced it has entered into securities purchase agreements with new and existing institutional investors and certain directors and officers and employees of the Company (the directors and officers and employees herein referred to as the “Insiders”), for the purchase and sale of 2,341,260 shares of its common stock and warrants to purchase up to an aggregate of 2,341,260 shares of common stock at a combined purchase price per share and accompanying warrant of $5.50 for the institutional investors, and $6.50 per share and accompanying warrant for the Insiders, pursuant to a registered direct offering. The warrants will be exercisable commencing six months from the date of issuance at a price of $6.40 per share and will expire five years from the initial exercise date. The warrant term may be subject to acceleration following the satisfaction of certain conditions. In the case of Insiders that participated in the offering, if the warrant termination date is on a blackout date, then the Insiders will have an additional 60 days from the termination of the blackout date to exercise the warrant.

The gross proceeds of the offering will be approximately $13.0 million before deducting placement agent fees and other estimated offering expenses. The closing of the offering is expected to take place on or about September 16, 2024, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

A.G.P./Alliance Global Partners is acting as sole placement agent for the offering.

This offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-279036) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective on August 7, 2024. A prospectus supplement describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.

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 any such state or jurisdiction.

About INmune Bio

INmune Bio Inc. is a publicly traded (NASDAQ: INMB), clinical-stage biotechnology company focused on developing treatments that target the innate immune system to fight disease. INmune Bio has two product platforms that are both in clinical trials: The Dominant-Negative Tumor Necrosis Factor (DN-TNF) product platform utilizes dominant-negative technology to selectively neutralize soluble TNF, a key driver of innate immune dysfunction and a mechanistic driver of many diseases. XPRO, the first of several DN-TNF products, is in clinical trials to determine if it can treat patients with Mild Alzheimer’s disease. Additional therapeutic indications including treatment-resistant depression and oncology will be pursued when resources allow. The Natural Killer Cell Priming Platform includes INKmune™, a therapy developed to prime a patient’s NK cells to treat patients with cancer. INKmune uses a precision medicine approach for the treatment of a wide variety of hematologic and solid tumor malignancies. The INKmune trial is enrolling patients into a US Phase I/II trial in men with metastatic castrate resistant prostate cancer. To learn more, please visit www.inmunebio.com.

Forward-Looking Statements

Clinical trials are in early stages and there is no assurance that any specific outcome will be achieved. Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 including but not limited statements related to the expected timing of the closing and the intended use of proceeds. Any forward-looking statements contained herein are based on current expectations but are subject to a number of risks and uncertainties. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. INB03™,  XPro1595, and INKmune™ are still in clinical trials or preparing to start clinical trials and have not been approved by the US Food and Drug Administration (FDA) or any regulatory body and there cannot be any assurance that they will be approved or that any specific results will be achieved. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company’s ability to produce more drug for clinical trials; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and, the Company’s business, research, product development, regulatory approval, marketing and distribution plans and strategies. These and other factors are identified and described in more detail in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, the Company’s Quarterly Reports on Form 10-Q and the Company’s Current Reports on Form 8-K. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

INmune Bio Contact:

David Moss, CFO (858) 964-3720
info@inmunebio.com

Investor Contact:

Mike Moyer
Managing Director – LifeSci Advisors
mmoyer@lifesciadvisors.com

FAQ

What is the size of INmune Bio's (INMB) registered direct offering announced on September 13, 2024?

INmune Bio (INMB) announced a $13.0 million registered direct offering of common stock and warrants on September 13, 2024.

How many shares and warrants are being offered in INmune Bio's (INMB) September 2024 offering?

INmune Bio (INMB) is offering 2,341,260 shares of common stock and warrants to purchase up to an additional 2,341,260 shares of common stock.

What is the purchase price for INmune Bio's (INMB) shares and warrants in the September 2024 offering?

The combined purchase price is $5.50 per share and accompanying warrant for institutional investors, and $6.50 for company insiders.

When will the warrants from INmune Bio's (INMB) September 2024 offering be exercisable?

The warrants will be exercisable six months after the date of issuance at a price of $6.40 per share and will expire five years from the initial exercise date.