GAITHERSBURG, Md., Aug. 17, 2017 (GLOBE NEWSWIRE) -- Altimmune, Inc. (Nasdaq:ALT), a clinical-stage immunotherapeutics company, today announced it has entered into a definitive securities purchase agreement with new and existing investors to sell an aggregate of 15,656 shares of Series B convertible preferred stock and warrants. The gross proceeds to the Company are expected to be approximately $14.7 million, before the receipt of proceeds from the exercise of the warrants, if any, and prior to deducting placement agent fees and other expenses associated with the offering. The Company expects the offering to close on or about August 21, 2017, subject to customary closing conditions.
The preferred stock is being issued with a stated value of $1,000 per share and a 6% original issue discount. The warrants will be initially exercisable into an aggregate of 2,345,427 shares of common stock at an exercise price of $2.67 per share, and will be exercisable either for cash or on a net exercise basis, at the option of the holder. The warrants will be immediately exercisable and will expire on August 15, 2022.
The Company has agreed to redeem the preferred stock at the then stated value in nine equal monthly installments beginning on December 15, 2017 and on the 15th day of each of the eight subsequent months thereafter, subject to certain adjustments and exceptions. Subject to the satisfaction of customary equity conditions, the redemption payments will be in cash or stock, or any combination of the foregoing, at the option of the Company. In the event such equity conditions are not satisfied or waived, then the Company will be required to redeem the preferred stock for cash.
Altimmune intends to use the net proceeds from this financing for the continued advancement of development activities for the Company’s clinical-stage product pipeline, general corporate purposes, and strategic growth opportunities.
The investors in the offering include Novartis US, HealthCap and Truffle Capital. Piper Jaffray & Co. acted as sole placement agent, and Proskauer Rose LLP represented Altimmune, in connection with the Offering.
About Altimmune
Altimmune is a clinical-stage immunotherapeutics company focused on the development of products to stimulate robust and durable immune responses for the prevention and treatment of disease and on the development of two next-generation anthrax vaccines that are intended to improve protection and safety while having favorable dosage and storage requirements compared to other anthrax vaccines. The company has two proprietary platform technologies, RespirVec and Densigen, each of which has been shown to activate the immune system in distinctly different ways than traditional vaccines.
