Hemispherx BioPharma launches $8M rights issue to fund cancer drug trials

Hemispherx BioPharma Inc (NYSE American:HEB) has lodged a prospectus for an $8 million rights offering to purchase up to 8,000 units at $1,000 each as it looks to raise money to fund trials for its anti-cancer agent Ampligen.

Under the proposed rights offering, Hemispherx will distribute to its shareholders and to holders of certain options and warrants as of February 14, one non-transferable subscription right for each share of stock held on the record date.

READ: Hemispherx Biopharma’s cancer drug Ampligen to be used in new oncology study

Each right permits the shareholder to purchase one unit at a subscription price of $1,000, consisting of one share of Series B Convertible Preferred stock (with a face value of $1,000) and 4,000 five-year warrants, each with an exercise price of $0.25.

“We are extremely pleased with the progress to date, moving Ampligen into immuno-oncology clinical trials for evaluation as an anti-cancer agent. Our use of a rights offering allows those stockholders who participate in the offering to help fund the Company and benefit from our future work,” said Thomas Equels, CEO of Hemispherx, in a statement.

The rights offering is expected to expire on or about March 1, 2019. Maxim Group and Ascendiant Capital Markets LLC have been hired as dealer-managers in the rights offering.

Hemispherx’s flagship products include the Argentina-approved Ampligen, which treats chronic fatigue syndrome and cancer, and the FDA-approved drug Alferon N Injection, a treatment for genital warts.

Hemispherx shares closed up by 11% to hit $0.26 on Wednesday.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors