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CEL-SCI Announces Closing of $10.8 Million Offering

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CEL-SCI (NYSE American: CVM), a cancer immunotherapy company, has closed a $10.8 million offering of 10,845,000 shares of common stock (or pre-funded warrants) at $1.00 per share. The company plans to use the net proceeds to fund the development of Multikine, its lead investigational therapy, as well as for general corporate purposes and working capital. ThinkEquity acted as the sole placement agent for this best-efforts offering. CEL-SCI is preparing to commence a confirmatory trial for Multikine, with enrollment expected to begin in Q4 2024. The company's focus remains on activating the immune system to fight cancer and infectious diseases.

CEL-SCI (NYSE American: CVM), una compagnia di immunoterapia contro il cancro, ha chiuso un'offerta di 10,8 milioni di dollari per 10.845.000 azioni ordinarie (o warrant pre-finanziati) a 1,00 dollaro per azione. L'azienda prevede di utilizzare il ricavato netto per finanziare lo sviluppo di Multikine, la sua terapia sperimentale principale, oltre che per scopi aziendali generali e capitale circolante. ThinkEquity ha agito come unico agente di collocamento per questa offerta a migliori sforzi. CEL-SCI si sta preparando per avviare un trial di conferma per Multikine, con arruolamento previsto per il quarto trimestre del 2024. L'obiettivo dell'azienda rimane attivare il sistema immunitario per combattere il cancro e le malattie infettive.

CEL-SCI (NYSE American: CVM), una empresa de inmunoterapia contra el cáncer, ha cerrado una oferta de 10.8 millones de dólares por 10,845,000 acciones ordinarias (o garantías prefinanciadas) a 1.00 dólar por acción. La compañía planea utilizar los ingresos netos para financiar el desarrollo de Multikine, su terapia investigacional principal, así como para propósitos corporativos generales y capital de trabajo. ThinkEquity actuó como el único agente de colocación para esta oferta de mejores esfuerzos. CEL-SCI se está preparando para iniciar un ensayo de confirmación para Multikine, con inscripción esperada para el cuarto trimestre de 2024. El enfoque de la compañía sigue siendo activar el sistema inmunológico para combatir el cáncer y las enfermedades infecciosas.

CEL-SCI (NYSE American: CVM)은 암 면역 요법 회사로, 1주당 1.00달러에 10,845,000주의 보통주(또는 자금 지원이 완료된 보증서)를 포함하는 1천만 8백만 달러의 공모를 마감했습니다. 회사는 순수익을 사용하여 Multikine, 자사의 주요 연구 치료제 개발을 지원할 예정이며, 일반 기업 목적 및 운영 자본에도 사용할 예정입니다. ThinkEquity는 이 최선의 노력을 다하는 발행의 단독 모집 대행자로 활동했습니다. CEL-SCI는 Multikine에 대한 확인 임상시험을 시작할 준비 중이며, 2024년 4분기에 참가자 모집이 시작될 것으로 예상됩니다. 이 회사의 초점은 암 및 감염병과 싸우기 위해 면역 체계를 활성화하는 것입니다.

CEL-SCI (NYSE American: CVM), une entreprise d'immunothérapie contre le cancer, a clôturé une offre de 10,8 millions de dollars pour 10 845 000 actions ordinaires (ou bons préfinancés) au prix de 1,00 dollar par action. L'entreprise prévoit d'utiliser le produit net pour financer le développement de Multikine, sa principale thérapie expérimentale, ainsi que pour des besoins d'entreprise généraux et le fonds de roulement. ThinkEquity a agi en tant qu'agent de placement exclusif pour cette offre en meilleure diligence. CEL-SCI se prépare à commencer un essai de confirmation pour Multikine, avec une inscription prévue au quatrième trimestre de 2024. L'objectif de l'entreprise reste d'activer le système immunitaire pour lutter contre le cancer et les maladies infectieuses.

CEL-SCI (NYSE American: CVM), ein Unternehmen für Krebsimmuntherapie, hat eine Platzierung in Höhe von 10,8 Millionen Dollar abgeschlossen, bei der 10.845.000 Aktien des Stammkapitals (oder vorfinanzierte Warrants) zu einem Preis von 1,00 Dollar pro Aktie angeboten wurden. Das Unternehmen plant, die Nettoerlöse zur Finanzierung der Entwicklung von Multikine, seiner wichtigsten experimentellen Therapie, sowie für allgemeine Unternehmenszwecke und Betriebskapital zu verwenden. ThinkEquity fungierte als alleiniger Platzierungsagent für diese „Best-Efforts“-Platzierung. CEL-SCI bereitet sich darauf vor, eine wissenschaftliche Bestätigungsstudie für Multikine zu beginnen, wobei die Rekrutierung für das vierte Quartal 2024 erwartet wird. Der Fokus des Unternehmens liegt weiterhin darauf, das Immunsystem zu aktivieren, um Krebs und Infektionskrankheiten zu bekämpfen.

Positive
  • Raised $10.8 million in gross proceeds through stock offering
  • Funding secured for continued development of Multikine
  • Confirmatory trial for Multikine planned to begin enrollment in Q4 2024
Negative
  • Potential dilution of existing shareholders due to new stock issuance

Insights

CEL-SCI's $10.8 million offering is a significant move for this clinical-stage biotechnology company. The sale of 10,845,000 shares at $1.00 per share provides a important capital injection, bolstering their financial position. This funding is particularly important given the company's focus on developing Multikine, their lead immunotherapy candidate.

The offering's structure, including the option for pre-funded warrants, demonstrates flexibility in attracting investors. However, the $1.00 price point suggests some dilution for existing shareholders. The use of a shelf registration indicates the company's proactive approach to capital raising, allowing them to act quickly when market conditions are favorable.

Investors should note that while this capital raise strengthens CEL-SCI's balance sheet, it's important to monitor how efficiently the company utilizes these funds in advancing Multikine's development and supporting general operations. The planned Q4 2024 start for the confirmatory trial suggests a significant cash burn rate, making this funding essential for near-term operations.

Overall, this offering provides CEL-SCI with a financial runway to progress their clinical programs, but investors should closely watch for updates on Multikine's development and the company's cash management strategies in the coming quarters.

CEL-SCI's focus on immunotherapy for cancer and infectious diseases places them in a highly competitive and rapidly evolving sector. The completion of Multikine's pivotal Phase 3 trial for head and neck cancer is a significant milestone, with the Orphan Drug Status from the FDA potentially offering market exclusivity and development incentives.

The planned confirmatory trial for Multikine, set to begin enrollment in Q4 2024, is a critical next step. This timeline suggests confidence in their data, but also indicates a lengthy process ahead before potential commercialization. Investors should be aware that the success of this confirmatory trial is important for CEL-SCI's future prospects.

The company's dual focus on cancer and infectious diseases could provide diversification, but also requires significant resources to advance multiple programs simultaneously. The $10.8 million raised, while substantial for a company of CEL-SCI's size, may only fund operations for a time given the high costs associated with late-stage clinical trials.

As the biotech sector faces increased scrutiny and funding challenges, CEL-SCI's ability to efficiently progress Multikine through regulatory hurdles will be paramount. Investors should closely monitor trial progress, any interim data releases and potential partnerships that could support the company's development efforts.

VIENNA, Va.--(BUSINESS WIRE)-- CEL-SCI Corporation (“CEL-SCI” or the “Company”) (NYSE American: CVM), a cancer immunotherapy company, today announced the closing of its previously announced best-efforts offering of 10,845,000 shares of its common stock (or pre-funded warrants (“Pre-Funded Warrants”) in lieu thereof). Each share of common stock (or Pre-Funded Warrant) was sold at an offering price of $1.00 per share (inclusive of the Pre-Funded Warrant exercise price), for gross proceeds of $10,845,000, before deducting placement agent fees and other offering expenses. All the shares and Pre-Funded Warrants in the offering were offered by the Company.

The Company intends to use the net proceeds from the offering to fund the continued development of Multikine, general corporate purposes, and working capital.

ThinkEquity acted as sole placement agent 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. 333-265995), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 1, 2022 and declared effective on July 15, 2022. The offering was made by means of a prospectus supplement and prospectus which have been filed with the SEC and available on the SEC’s website at www.sec.gov. You should read the applicable 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 CEL-SCI Corporation

CEL-SCI is a clinical-stage biotechnology company focused on finding the best way to activate the immune system to fight cancer and infectious diseases. The Company’s lead investigational therapy Multikine completed a pivotal Phase 3 clinical trial involving head and neck cancer, for which the Company has received Orphan Drug Status from the FDA. The Company will be commencing a confirmatory trial for Multikine, with enrollment expected to begin in Q4 2024. The Company has operations in Vienna, Virginia, and near Baltimore, Maryland. https://cel-sci.com/

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words "intends," "believes," "anticipated," "plans" and "expects," and similar expressions, are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such statements include, but are not limited to, statements about the use of proceeds of the offering. Factors that could cause or contribute to such differences include an inability to duplicate the clinical results demonstrated in clinical studies, timely development of any potential products that can be shown to be safe and effective, receiving necessary regulatory approvals, difficulties in manufacturing any of the Company's potential products, inability to raise the necessary capital and the risk factors set forth from time to time in CEL-SCI's filings with the Securities and Exchange Commission, including but not limited to its report on Form 10-K for the year ended September 30, 2023. The Company undertakes no obligation to publicly release the result of any revision to these forward-looking statements which may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

* Multikine (Leukocyte Interleukin, Injection) is the trademark that CEL-SCI has registered for this investigational therapy. This proprietary name is subject to FDA review in connection with the Company's future anticipated regulatory submission for approval. Multikine has not been licensed or approved for sale, barter or exchange by the FDA or any other regulatory agency. Similarly, its safety or efficacy has not been established for any use.

Gavin de Windt

CEL-SCI Corporation

(703) 506-9460

 

Source: CEL-SCI Corporation

FAQ

How much did CEL-SCI (CVM) raise in its recent offering?

CEL-SCI (CVM) raised $10.8 million in gross proceeds through its recent offering of common stock and pre-funded warrants.

What is the intended use of the funds raised by CEL-SCI (CVM) in this offering?

CEL-SCI (CVM) intends to use the net proceeds to fund the continued development of Multikine, for general corporate purposes, and working capital.

When is CEL-SCI (CVM) expected to begin enrollment for the confirmatory trial of Multikine?

CEL-SCI (CVM) expects to begin enrollment for the confirmatory trial of Multikine in Q4 2024.

What is the main focus of CEL-SCI 's (CVM) research?

CEL-SCI (CVM) focuses on finding the best way to activate the immune system to fight cancer and infectious diseases.

Cel-Sci Corporation

NYSE:CVM

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Biotechnology
Biological Products, (no Disgnostic Substances)
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United States of America
VIENNA