BriaCell Therapeutics to receive $650,000 investment

2016-04-22 09:27 ET - News Release

Mr. Gadi Levin reports
BRIACELL ANNOUNCES PROPOSED INVESTMENT BY LEADING US BIOTECH FUND; COMPANY PLANS TO SEEK NASDAQ UPLISTING
BriaCell Therapeutics Corp. has entered into a subscription agreement with a leading U.S. biotechnology fund for an investment of $650,000. The subscription agreement of units is priced at 19 cents, each unit consisting of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share for a period of 60 months from closing at an exercise price of 30 cents.

The transaction is expected to close on or about April 26, 2016, subject to customary closing conditions including TSX Venture Exchange approval. Rodman & Renshaw, a unit of H.C. Wainwright & Co., acted as the exclusive placement agent. HCW has a specialized focus on biotechnology, and has successfully financed and listed many life science companies onto the Nasdaq Stock Market.

"We are extremely pleased to report that BriaCell is now funded through its next major milestones," commented BriaCell's chief financial officer Gadi Levin. "Interest in BriaCell has surged following the company's recent scientific research and development achievements. H.C. Wainwright and the institutional investor are both sophisticated in biotech, and we are pleased to have partners who believe in the potential of BriaCell's immuno-oncology platform. This financing creates significant value for the company by strengthening the company's balance sheet and by positioning the company to advance towards very important value drivers." BriaCell intends to use the offering proceeds toward the company's phase I/IIa clinical trial, for advancing the BriaCell research and development program and companion diagnostic platform known as BriaDx, and for general corporate purposes. BriaCell plans to seek Nasdaq up-list

While HCW was successful in obtaining this important investment, which allows BriaCell to launch its phase I/IIa clinical trial in the coming months without delay, this small placement is the beginning of a broader engagement through which BriaCell plans to seek an up-listing onto the Nasdaq. The company has long believed that the optimal stock exchange for a mature biotech is the Nasdaq. Biotech companies have been shown to thrive on the Nasdaq, with access to more institutional biotech investors. BriaCell believes that this successful equity investment with a U.S. investment bank and U.S. institutional investor represents promise in regard to the possible interest levels for a Nasdaq up-listing. There is no guarantee of a successful up-list, and the company will provide an update on events as they progress.

As BriaCell readies for its long-awaited phase I/IIa clinical trial with up to 24 cancer patients, the company believes it is now well positioned to pursue such a listing. This is compounded by recent success on the BriaCell companion diagnostic and R&D platform, including developments pertaining to the BriaVax-discovered gene signature and proposed mechanism of action. The company completed a scientific presentation on this research and has now made the data available on the company's website.
We seek Safe Harbor.