VIENNA, Va. – CEL-SCI Corporation (NYSE American: CVM), focused on cancer immunotherapy treatments, has finalized a stock offering that raised approximately $5 million. The company, which is working on the development of its flagship treatment Multikine, announced the completion of the offering today. According to InvestingPro data, CVM’s stock has declined 85% year-to-date, with the company’s financial health score currently rated as WEAK.
The offering consisted of 16,130,000 shares of common stock, or pre-funded warrants in certain cases, at a price of $0.31 per share. The proceeds, before deducting placement agent fees and other expenses, will fund the continued development of Multikine, general corporate purposes, and working capital requirements. This funding comes at a crucial time, as InvestingPro analysis shows the company’s current ratio at 0.64, indicating short-term obligations exceed liquid assets, with a last twelve months EBITDA of -$25.52 million.
ThinkEquity served as the sole placement agent for the transaction. The securities were offered pursuant to a shelf registration statement on Form S-3, which was filed with the U.S. Securities and Exchange Commission (SEC) on July 1, 2022, and became effective on July 15, 2022.
Multikine is an investigational therapy designed to enhance the immune system’s response to cancer. The treatment has been administered to over 740 patients and has received Orphan Drug designation from the FDA for neoadjuvant therapy in patients with squamous cell carcinoma of the head and neck. Following a completed Phase 3 study, the FDA agreed with CEL-SCI’s patient selection criteria for a confirmatory Registration Study, which plans to enroll 212 patients.
The company, with operations in Vienna, Virginia, and near Baltimore, Maryland, emphasizes that boosting a patient’s immune system early in the disease process could potentially improve survival outcomes.
This press release contains forward-looking statements, and the company cautions that actual results could differ materially from those projected due to various risks and uncertainties. These include challenges in duplicating clinical results, obtaining regulatory approvals, manufacturing, capital raising, and other risk factors periodically reported in SEC filings. Despite current challenges, analyst price targets range from $6.20 to $10.00, suggesting potential upside. For deeper insights into CEL-SCI’s financial health and 12 additional ProTips, consider subscribing to InvestingPro.
The information in this article is based on a press release statement from CEL-SCI Corporation.
In other recent news, CEL-SCI Corporation has made noteworthy advancements in its investigational cancer treatment, Multikine. The FDA has concurred with the company’s patient selection approach for a confirmatory Registration Study, focusing on newly diagnosed head and neck cancer patients with low PD-L1 tumor expression. This follows positive results from a previous Phase 3 study, where patients with low PD-L1 expression showed a significant survival benefit when treated with Multikine.
In addition, the company has appointed renowned oncologist, Dr. Nabil F. Saba, as the Lead of the Study Steering Committee for its upcoming global Phase III clinical trial of Multikine. This strategic decision is expected to bolster the development of Multikine.
Furthermore, CEL-SCI Corporation has announced a public offering of 10,845,000 shares, aiming to raise gross proceeds of $10.8 million for the further development of Multikine and general corporate needs. The UK’s Healthcare Products Regulatory Agency has granted a pediatric study waiver for Multikine, eliminating the need for trials in patients under 18 as part of the UK marketing approval process.
The U.S. FDA’s Oncologic Drugs Advisory Committee has recently expressed concerns over the use of certain immune checkpoint inhibitors in patients with low PD-L1 expression. This development could potentially pave the way for alternative treatments like Multikine. These are recent developments and it is important to note that Multikine is still under investigation, and its safety and efficacy have not yet been established for any use.
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