EDINBURGH - TC BioPharm (Holdings) plc (NASDAQ: TCBP), a clinical-stage biotechnology firm, announced today the execution of a definitive agreement leading to the exercise of warrants for purchasing up to 1,750,000 of the Company's American Depositary Shares (ADSs). The exercised warrants, originally issued in December 2023, are expected to yield roughly £3.1 million ($3.9 million) in gross proceeds before the deduction of placement agent fees and other estimated expenses.
The exercised warrants, priced at £1.5814 per ADS, correspond to twenty ordinary shares each and are part of a five-year term agreement. In conjunction with this exercise, TC BioPharm will issue new unregistered warrants for up to 3,500,000 shares of common stock. These new warrants, priced at £1.175 per ADS, are immediately exercisable and will remain valid for forty-two months post-issuance.
H.C. Wainwright & Co. serves as the exclusive placement agent for the offering, which is set to close on or about May 8, 2024, provided all customary closing conditions are met. The net proceeds from this transaction are designated to fund an upcoming clinical trial targeting relapse/refractory Acute Myeloid Leukemia, alongside general operating costs and working capital.
The private placement of the new warrants is in accordance with Section 4(a)(2) of the Securities Act of 1933 and Regulation D. The new warrants and the ADSs underlying them have not been registered under the Act or applicable state securities laws, thus they cannot be offered or sold in the U.S. without registration or an exemption. TC BioPharm has committed to filing a registration statement with the SEC for the resale of the common stock shares issuable upon the exercise of the new warrants.
This announcement does not serve as an offer to sell or a solicitation of an offer to buy any securities. No sales will occur in jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws.
TC BioPharm is at the forefront of developing gamma-delta T cell therapies for cancer treatment, with ongoing clinical trials and a substantial intellectual property portfolio. The information in this article is based on a press release statement.
InvestingPro Insights
Amidst the announcement of TC BioPharm's strategic financial maneuvers, investors may be keen to understand the company's current financial health and market performance. According to real-time data from InvestingPro, TC BioPharm holds a market capitalization of $4.66 million. The company's performance metrics indicate a significant 1-year price total return of -93.11%, reflecting a challenging period for the stock. Despite these hurdles, the company has experienced a strong return of 50.83% over the last three months, showcasing a potential turnaround or positive investor sentiment in the short term.
InvestingPro Tips suggest a mixed picture for TC BioPharm. While the company holds more cash than debt on its balance sheet, which is typically a positive sign for financial stability, it is also quickly burning through cash and has not been profitable over the last twelve months. Additionally, the stock has generally traded with high price volatility, and the valuation implies a poor free cash flow yield. These insights could be critical for investors evaluating the risk and potential of TC BioPharm's warrants exercise and its implications for future growth.
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