Antigenics Inc. (NASDAQ: AGEN) has announced this morning that it has entered into definitive agreements to sell 7 million shares of its common stock at a price of $3.00 per share in a private placement. The gross proceeds to the company will be $21 million before deducting filing and placement fees. The investors buying into this private placement are also receiving five-year warrants to purchase up to an additional 7 million shares of common stock at an exercise price of $3.75 per share. Rodman & Renshaw is acting as the exclusive placement agent for this offering.
The company noted that the proceeds from the financing will be used primarily for funding key commercial and regulatory efforts. That shall include the launch of Oncophage(R) (vitespen) in Russia, as well as possible filings in Europe and Canada.
This placement is on the heels of a gain of more than 20% yesterday on more than 15 million shares traded because of its Oncophage(R) being approved in Russia. Shares yesterday closed at $3.03, so all in all it does not look like Antigenics had to give away the keys to the lab here to secure that money. Their December 31, 2007 balance sheet showed only $16.679 million in cash and short term investments, while its short term liabilities were $8.38 million and total liabilities with long-term debt were more than $91.5 million.
Shares are indicated down 1.6% at $2.98 this morning and the 52-week trading range is $1.95 to $5.42. Before the placement shares, Antigenics’ market cap is $171 million.
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Jon C. Ogg
April 9, 2008
Jon Ogg produces the Special Situation Investing Newsletter. He can be reached at email@example.com and he does not own securities in the companies he covers.