Investors Don’t Like Pricing Of Agenus Inc (NASDAQ:AGEN) Public Offering
The $84 million market capped development stage biotech firm Agenus Inc (NASDAQ:AGEN) announced on 5th February that it has determined the selling price of its shares at the previously announced public offer of 19.3 million shares at $2.7 per share. This pricing was greeted with disappointment by the market in general, as the stock had closed at $2.9 on close of business on 4th February and had breached $5.4 in the past 52 weeks.
Agenus Inc (NASDAQ:AGEN) has also set aside 2.9 million stocks to accommodate any over subscription and has allowed a 30 day option for its underwriters William Blair & Company, L.L.C. to buy out the same. Maxim Group LLC has been retained as the lead manager while H.C. Wainwright & Co., LLC and MLV & Co. LLC have been appointed as co-managers for the offering. Geller Biopharm will be handholding the drug maker through this offer process in its role of financial advisor.
Will Help Fund Acquisition
The proceeds that are expected to be generated from this deal is expected to help Agenus Inc (NASDAQ:AGEN) meet its commitments towards acquiring privately held bio tech firm 4-Antibody AG. The private firm has been working towards developing anti bodies which are designed to fight against a whole host of cancer cells and viral targets. It had recently announced unprecedented results from its clinical trials testing out the antibodies it is developing in association with Ludwig Institute for Cancer Research and Memorial Sloan-Kettering Cancer Centre.
Terms Of The Deal
The transaction is slated for closure in February 14 and Agenus Inc (NASDAQ:AGEN) will pay owners of Antibody AG. close to $10 million in the form of common stock and will have to make arrangements for close to $40 million as contingency payments in the form of cash and stock as development goals are met going forward.