Health and Healthcare
AmpliPhi Biosciences Crumbles After Announcing Secondary Offering
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AmpliPhi Biosciences Corp. (NYSEMKT: APHB) saw its shares crater on Friday after the company announced that pricing of its secondary offering. The company will be offering roughly 6.96 million shares of common stock and warrants. Each share of common stock is being sold with a common warrant to purchase one share of common stock at a combined effective price of $1.50 per share. The company expects to raise $9.8 million in net proceeds.
The common warrants will be immediately exercisable at a price of $1.50 per share of common stock and will expire five years from the date of issuance. The shares of common stock or the prefunded warrants, and the accompanying common warrants, can only be purchased together in the offering but will be issued separately and will be immediately separable upon issuance. The offering is expected to close on or about May 10.
The sole underwriter and book-running manager for the offering is Rodman & Renshaw.
This biotechnology company is focused on pioneering the development and commercialization of therapies for antibiotic-resistant infections using bacteriophage-based technology. In May 2017, the firm announced a new strategic emphasis on developing precisely targeted and personalized bacteriophage therapies for patients with serious or life-threatening antibiotic-resistant infections.
AmpliPhi has reported results from two Phase 1 clinical trials of AB-SA01, one for the treatment of S. aureus in chronic rhinosinusitis patients (safety and preliminary efficacy) and one to evaluate the safety of AB-SA01 when administered topically to the intact skin of healthy adults.
The company intends to use the net proceeds from this offering for general corporate purposes, including manufacturing expenses, clinical trial expenses, research and development expenses and general and administrative expenses.
Shares of AmpliPhi were last seen down close to 60% at $1.22 on Friday, with a consensus analyst price target of $30.00 and a 52-week trading range of $0.30 to $22.50.
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