Market Overview

CEL-SCI Corporation to Raise $10.5M in Registered Direct Offering

CEL-SCI Corporation (NYSE: CVM), a late-stage oncology company, has entered into a definitive agreement to sell 35 million shares of its common stock at a price per share of $0.30 in a registered direct offering to institutional investors, representing gross proceeds of approximately $10.5 million.

The investors will also receive warrants to purchase up to 26.25 million shares of CEL-SCI Corporation's common stock. The warrants have an exercise price of $0.40 per share, are not exercisable for six months from the close of the transaction and have a term of exercise of 4 years from the date of issuance. The closing of the offering is expected to take place on or before Friday, December 7, 2012, subject to the satisfaction of customary closing conditions. CEL-SCI Corporation plans to use the net proceeds for CEL-SCI's general and administrative expenses and for CEL-SCI's Phase III clinical trial involving its investigational product Multikine (Leukocyte Interleukin, Injection)*.

The shares and warrants are being offered by CEL-SCI Corporation pursuant to an effective shelf registration statement declared effective by the Securities and Exchange Commission on October 5, 2012.

Chardan Capital Markets, LLC acted as the exclusive placement agent for the transaction.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities may only be offered by means of a prospectus. Copies of the final prospectus supplement and accompanying base prospectus can be obtained from the SEC's website at http://www.sec.gov.

Posted-In: News Offerings

 

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