Cel-Sci Corp. (NASDAQ: CVM) stock declined by 0.25% at the last close while the CVM stock price falls by 11.00% in the pre-market trading session. CEL-SCI is a clinical-stage biotechnology firm whose goal is to discover the most effective technique to engage the immune system in the battle against cancer and infectious illnesses. Multikine, CVM’s principal experimental medicine, is now in a critical Phase 3 clinical development for head and neck cancer, for which the FDA has granted Orphan Drug Status.
What is happening?
CVM announced that it has signed an underwriting agreement with Kingswood Capital Markets, which is a division of Benchmark Investments, LLC, under which the underwriter has agreed to buy a minimum of 1,000,000 shares of CVM’s common stock on a strong assurance basis at a price to the public of $22.62 per share, showing a 5% discount to CVM’s closing share price on June 8, 2021. Depending on normal closing conditions, the offering is scheduled to close on or about June 11, 2021.
The offering’s only book-running manager is Kingswood Capital Markets, a part of Benchmark Investments, LLC. The underwriter has also been granted a 30-day option to acquire up to 15% of the offering at the Public Price by CVM. Revenue will be used to support the ongoing development of Multikine*, LEAPS, and other general company reasons.
Recent Past Development
On May 18, 2021, CVM released its financial results for the quarter ended March 31, 2021.
CEL-SCI announced an $8.5 million operating loss for the quarter ended March 31, 2021, compared to a $6.7 million operating loss for the quarter ended March 31, 2020.
CEL-SCI spent nearly $6.9 million and $3.3 million in capitalized expenses to enhance its production facilities in preparation for the eventual commercial production of Multikine for the six and three months ended March 31, 2021, accordingly. The expected total cost of this improvement is $10.6 million, of which $9.5 million has already been spent through March 31, 2021. The property’s landlord has agreed to cover the remaining $2.4 million in expenditures, with payback commencing March 1, 2021, through increased lease payments.