MORRIS PLAINS, N.J., Aug. 2 /PRNewswire-FirstCall/ -- Immunomedics, Inc.
(Nasdaq: IMMU) today announced that agreements have been signed to sell
4,178,116 shares of its common stock, resulting in gross proceeds to the
Company of approximately $15.1 million. The shares are being sold to select
institutional investors at a price of $3.61 per share. The Company has also
agreed to grant these investors rights to purchase an additional 4,178,116
shares of its common stock at a price of $3.97 per share, by a date no later
than November 24, 2004. The shares of common stock are being offered pursuant
to an effective shelf registration statement filed with the Securities and
Exchange Commission. The sale is expected to close on or about Monday, August
2, 2004, subject to customary closing conditions. RBC Capital Markets is
acting as the exclusive placement agent in connection with the transaction.
"We are pleased with this round of financing, which has strengthened our
cash position," said Gerard G. Gorman, Vice President of Finance and Chief
Financial Officer. At March 31, 2004, the Company had $25.0 million in cash
and liquid securities, including $5.4 million of restricted securities that
collateralize the New Jersey Economic Development Authority financing
completed in May 2003 for construction of expanded manufacturing facilities.
"Our improved cash position facilitates, we believe, our negotiating
position in various out-licensing discussions, while we continue the clinical
development of our potential products for cancer and autoimmune disease
therapy," added Cynthia L. Sullivan, President and Chief Executive Officer.
Ms. Sullivan also stated: "We are particularly encouraged with the results of
our initial trial of epratuzumab, our humanized anti-CD22 antibody, in the
treatment of patients with systemic lupus erythematosus."
This press release shall not constitute an offer to sell or a solicitation
of an offer to buy, nor shall there be any sale of these securities in any
state in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state.
Any offer, if at all, will be made only by means of the prospectus, including
the prospectus supplement, which forms a part of the effective registration
statement.
Immunomedics, Inc. is a biopharmaceutical company focused on the
development, manufacture and commercialization of diagnostic imaging and
therapeutic products for the detection and treatment of cancer and other
serious diseases. Integral to these products are highly specific monoclonal
antibodies and antibody fragments designed to deliver radioisotopes and
chemotherapeutic agents to tumors and other sites of disease. Immunomedics
has nine therapeutic product candidates in clinical development and has two
marketed diagnostic imaging products. The most advanced therapeutic product
candidates are LymphoCide(R) (epratuzumab), for which certain Phase II
clinical trials for the treatment of non-Hodgkin's lymphoma have already been
completed, and CEA-Cide(R) (labetuzumab), which is in Phase I/II clinical
trials for the treatment of certain solid tumors.
This release, in addition to historical information, contains forward-
looking statements made pursuant to the Private Securities Litigation Reform
Act of 1995. Any statement in this release that is not a statement of
historical fact, including, but not limited to, statements regarding the
Company's business strategy, clinical trials and future financial condition,
is a forward-looking statement. Such forward-looking statements involve
significant known and unknown risks and uncertainties and actual result could
differ materially from those expressed or implied herein. Factors that could
cause such differences include, but are not limited to, risks associated with
new product development (including clinical trials outcome and regulatory
requirements/actions), competitive risks to marketed products and availability
of financing and other sources of capital, as well as the risks discussed in
the Company's Annual Report on Form 10-K for the fiscal year ended June 30,
2003 and other filings with the Securities and Exchange Commission. The
Company is not under any obligation, and the Company expressly disclaims any
obligation, to update or alter any forward-looking statements, whether as a
result of new information, future events or otherwise.
Company Contact (including to obtain a copy of the prospectus): Chau
Cheng, Associate Director, Investor Relations & Business Analysis,
(973) 605-8200, extension 123. Visit the Company's web site at
http://www.Immunomedics.com.
SOURCE Immunomedics, Inc.
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Related links:
http://www.Immunomedics.com
Company News On-Call:
http://www.prnewswire.com/comp/113121.html
CONTACT:
Company Contact (including to obtain a copy
of the prospectus) - Chau Cheng, Associate Director, Investor
Relations & Business Analysis, +1-973-605-8200, ext. 123, for
Immunomedics, Inc.
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