Advaxis, Inc. (NASDAQ:ADXS) stock lost close to 1/4th of its market valuation during trading on 27th March after the firm disclosed pricing for its proposed public offering of 4 million shares of common stock by an underwriter. The price per share for this offering has been fixed at $3, which is represented a 25 percent discount over its previous day’s close price. The company hopes to raise nearly $12.2 million from this activity and has also set aside another 0.61 million shares of the stock for the underwriters to buy under a 45 day option, in the event of the stock getting over subscribed.
Funds To Be Invested Back Into R & D
The funds thus generated from this offering are to be used by the development stage drug maker to further deepen its research and development efforts aimed towards expanding its product bucket. The offer is expected to be closed on 31st March. The firm has retained the services of Aegis Capital Corp. as its book-running manager, while Noble Financial Capital Markets has been roped in as the co-manager for this exercise.
Other Significant Developments In Recent Past
In the recent past, the drug maker has also been in the news for developments other than its fund raising exercise. The company brought in a new Chief Financial Officer in the form of Sara Bonstein who has also been appointed as company Senior Vice President. Ms. Bonstein is a veteran of the life sciences industry and has held leadership positions in many other bio tech firms like Eli Lilly & Company, ImClone Systems, and Johnson & Johnson.
Global Licensing Agreement
In the previous week, the firm had also disclosed that it has entered into a licensing agreement on a global scale with Aratana Therapeutics as per the terms of which the larger drug firm will be paying royalty on sales for Advaxis’s patented drug, ADXS-cHER2 which is used to treat various forms of cancer in dogs.