SELLAS Life Sciences Announces $21.0 Million Registered Direct Offering Priced at a Premium to Market

Rhea-AI Summary

SELLAS Life Sciences Group (NASDAQ: SLS) has announced a $21.0 million registered direct offering priced at a premium to market. The offering includes 15,849,056 shares of common stock (or equivalents) and warrants to purchase an equal number of shares. The combined effective price is $1.325 per share and accompanying warrant. Warrants have an exercise price of $1.20, are immediately exercisable, and expire in five years. The offering, expected to close around August 1, 2024, is made pursuant to an effective shelf registration statement. Maxim Group is acting as the sole placement agent. The proceeds will support SELLAS's focus on developing novel therapies for various cancer indications.

Positive

• Offering priced at a premium to market, potentially indicating investor confidence
• Significant fundraising of $21.0 million to support company operations
• Immediate exercisability of warrants provides potential for additional capital influx

Negative

• Potential dilution of existing shareholders' ownership
• Warrants may lead to further dilution if exercised in the future
• Increased share count could put downward pressure on stock price

Financial Analyst

SELLAS Life Sciences Group's $21 million registered direct offering at a premium to market is a significant development for the company. The $1.325 per share pricing, above the current market value, suggests investor confidence in SELLAS's potential. This capital injection will bolster the company's financial position, potentially extending its operational runway.

The inclusion of warrants with a $1.20 exercise price provides an additional upside for investors and could lead to future capital inflows if exercised. However, this also presents potential dilution risk for existing shareholders if all warrants are exercised.

The premium pricing and single institutional investor involvement indicate strong interest in SELLAS's late-stage clinical pipeline. This funding could accelerate the company's development of cancer therapies, potentially bringing them closer to market. Investors should monitor how efficiently SELLAS deploys this capital to advance its clinical programs and whether it translates into tangible progress in its drug development efforts.

Oncology Research Analyst

As an oncology research analyst, I find SELLAS Life Sciences' ability to secure funding at a premium particularly noteworthy. This suggests that their cancer therapy pipeline, focusing on a broad range of indications, has captured investor interest. The $21 million influx could significantly accelerate their late-stage clinical trials, potentially bringing novel cancer treatments to market sooner.

However, it's important to note that success in late-stage trials is never guaranteed in the oncology field. Investors should closely monitor upcoming trial results and regulatory interactions. The broad focus on multiple cancer indications could be a double-edged sword - it diversifies risk but may also spread resources thin.

The market's positive reception to this offering might indicate expectations of promising data or strategic developments in the near future. Keep an eye on any upcoming data releases or pipeline updates from SELLAS, as these could significantly impact the company's valuation and future funding prospects.

NEW YORK, July 31, 2024 (GLOBE NEWSWIRE) -- SELLAS Life Sciences Group, Inc. (NASDAQ: SLS) (“SELLAS’’ or the “Company”), a late-stage clinical biopharmaceutical company focused on the development of novel therapies for a broad range of cancer indications, today announced that it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale of 15,849,056 shares of common stock (or common stock equivalents in lieu thereof) and warrants to purchase up to an aggregate of 15,849,056 shares of common stock, in a registered direct offering priced at a premium to market. The combined effective offering price for each share of common stock (or common stock equivalent in lieu thereof) and accompanying warrant is $1.325. The warrants will have an exercise price of $1.20, will be immediately exercisable and will expire five years from issuance.

The gross proceeds to the Company are expected to be approximately $21.0 million before deducting placement agent fees and other estimated offering expenses. The offering is expected to close on or about August 1, 2024, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting as the sole placement agent for the offering.

This offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No 333-278334) previously filed with the U.S. Securities and Exchange Commission (the “SEC”). A prospectus supplement describing the terms of the proposed 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 Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Syndicate Department, or by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.

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

About SELLAS Life Sciences Group, Inc.

SELLAS is a late-stage clinical biopharmaceutical company focused on the development of novel therapeutics for a broad range of cancer indications. SELLAS’ other lead product candidate, GPS, is licensed from Memorial Sloan Kettering Cancer Center and targets the WT1 protein, which is present in an array of tumor types. GPS has the potential as a monotherapy and combination with other therapies to address a broad spectrum of hematologic malignancies and solid tumor indications. The Company is also developing SLS009 (formerly GFH009) - potentially the first and best-in-class differentiated small molecule CDK9 inhibitor with reduced toxicity and increased potency compared to other CDK9 inhibitors. Data suggests that SLS009 demonstrated a high response rate in AML patients with unfavorable prognostic factors including ASXL1 mutation, commonly associated with poor prognosis in various myeloid diseases. For more information on SELLAS, please visit www.sellaslifesciences.com.

Forward-Looking Statements 

This press release contains forward-looking statements. All statements other than statements of historical facts are “forward-looking statements,” including those relating to future events. In some cases, forward-looking statements can be identified by terminology such as “plan,” “expect,” “anticipate,” “may,” “might,” “will,” “should,” “project,” “believe,” “estimate,” “predict,” “potential,” “intend,” or “continue” and other words or terms of similar meaning. These statements include, without limitation, the Company’s ability to satisfy closing conditions with respect to the offering. These forward-looking statements are based on current plans, objectives, estimates, expectations, and intentions, and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties with oncology product development and clinical success thereof, the uncertainty of regulatory approval, and other risks and uncertainties affecting SELLAS and its development programs as set forth under the caption “Risk Factors” in SELLAS’ Annual Report on Form 10-K filed on March 28, 2024 and in its other SEC filings. Other risks and uncertainties of which SELLAS is not currently aware may also affect SELLAS’ forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements herein are made only as of the date hereof. SELLAS undertakes no obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations, or other circumstances that exist after the date as of which the forward-looking statements were made.

Investor Contact

Bruce Mackle
Managing Director
LifeSci Advisors, LLC
SELLAS@lifesciadvisors.com

FAQ

What is the size of SELLAS Life Sciences' (SLS) recent registered direct offering?

SELLAS Life Sciences (SLS) announced a $21.0 million registered direct offering on July 31, 2024.

How many shares and warrants are included in SELLAS's (SLS) offering?

The offering includes 15,849,056 shares of common stock (or equivalents) and warrants to purchase up to 15,849,056 shares.

What is the combined effective price for SELLAS's (SLS) offering?

The combined effective price for each share and accompanying warrant in SELLAS's (SLS) offering is $1.325.

When is SELLAS Life Sciences' (SLS) offering expected to close?

SELLAS Life Sciences' (SLS) offering is expected to close on or about August 1, 2024, subject to customary closing conditions.