BriaCell Therapeutics Announces Closing of $5.5 Million Public Offering

Rhea-AI Summary

BriaCell Therapeutics (Nasdaq: BCTX) has completed its previously announced public offering, raising $5.55 million in gross proceeds. The offering consisted of 7,400,000 common shares and warrants at a combined price of $0.75 per share and associated warrant. The warrants, exercisable at $0.9375 per share, are valid for five years from issuance. ThinkEquity served as the sole book-running manager for the offering.

The company plans to use the net proceeds for working capital requirements, general corporate purposes, and advancing business objectives. The securities were offered under BriaCell's effective shelf registration statement on Form S-3, which was declared effective on January 31, 2024.

Positive

• Secured $5.55 million in gross proceeds through public offering
• Five-year warrants provide potential for additional future capital at $0.9375 per share

Negative

• Significant shareholder dilution through issuance of 7.4 million new shares
• Offering price of $0.75 per share indicates potential discount to market price
• Additional dilution possible if warrants are exercised

Insights

Financial Analyst

This $5.5 million public offering significantly impacts BriaCell's financial position, though at a notably dilutive price of $0.75 per share, well below recent trading levels. The warrant structure, with a $0.9375 exercise price and 5-year term, provides additional potential future capital but also indicates market hesitancy. For a company with a $23.8M market cap, this raise represents substantial dilution of approximately 31%. While the funding strengthens the balance sheet for continued operations and clinical development, the pricing terms suggest challenging market conditions for small-cap biotechs. The offering's structure and pricing reflect current market dynamics where investors demand favorable terms for early-stage biotech investments.

Medical Research Analyst

The capital raise provides essential funding for BriaCell's immunotherapy development pipeline, particularly important for their ongoing clinical trials in cancer care. However, the relatively modest size of the raise may limit the scope and pace of clinical development activities. Small biotechs typically burn through capital quickly during clinical trials and this funding might only provide runway for 12-18 months of operations, depending on trial costs and general expenses. The market's tepid response, reflected in the offering price, suggests investors may need more compelling clinical data to assign higher valuations. The ability to advance their novel immunotherapy programs will be critical in demonstrating value and potentially securing more favorable funding terms in future raises.

PHILADELPHIA and VANCOUVER, British Columbia, Dec. 13, 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 the closing of its previously announced underwritten public offering of 7,400,000 common shares and warrants to purchase 7,400,000 common shares at a combined public offering price of $0.75 per share and associated warrant. The warrants have an exercise price of $0.9375 per share and are immediately exercisable upon issuance for a period of five years following the date of issuance. Total gross proceeds from the offering, before deducting the underwriter’s discounts and other offering expenses, is $5.55 million.

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

ThinkEquity acted as the sole book-running manager for the offering.

The securities were offered and sold pursuant to the Company’s currently effective 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 was made by means of a prospectus supplement and prospectus which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. You should read the prospectus supplement and prospectus for more complete information about the Company and the offering. You may obtain these documents free of charge by visiting the SEC website at www.sec.gov. Alternatively, you may obtain copies by contacting ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any 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 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 “Risks and Uncertainties” in the Company’s most recent Management’s Discussion and Analysis, under the heading “Risk Factors” in the Company’s most recent Annual Information Form, and under “Risks and Uncertainties” 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

How much did BriaCell (BCTX) raise in its December 2024 public offering?

BriaCell raised $5.55 million in gross proceeds through the public offering of 7,400,000 common shares and warrants.

What is the exercise price and duration of BCTX's December 2024 warrants?

The warrants have an exercise price of $0.9375 per share and are exercisable for five years from the date of issuance.

How will BriaCell (BCTX) use the proceeds from its December 2024 offering?

BriaCell intends to use the net proceeds for working capital requirements, general corporate purposes, and the advancement of business objectives.

What was the combined offering price per share and warrant for BCTX's December 2024 offering?

The combined public offering price was $0.75 per share and associated warrant.