WARREN, N.J. -- Immunomedics Inc. on Tuesday said it hascompleted a $4 million private placement of non-dividend-paying Series A convertible preferred stock. The company sold80,000 unregistered shares at $50 per share to AmerindoTechnology Growth Fund Ltd., Scudder Development Fund andEGS L.P., all of New York.
"We view this round of financing as a springboard for thecompany to achieve some long-term financial security," saidAmy Factor, Immunomedics' vice president of finance. "Theinvestors understand the technology, and we hope this willgive us increased credibility in the financial community."
Immunomedics (NASDAQ:IMMU) had $5.6 million in cash at theend of February and a monthly burn rate of $500,000. Its netloss was $2.5 million for the six months ended Dec. 31 onrevenues of $722,000. Net loss for the same period in 1989 was$1.8 million on revenues of $1.1 million.
Immunomedics anticipates that proceeds from the sale pluscurrent working capital will meet operating needs for the next12 months. The company is exploring additional sources offunding, said Factor.
Immunomedics said it hopes this month to file a productlicense application with the Food and Drug Administration forImmuRaid-CEA colorectal cancer imaging agent. The companyhas one cancer therapeutic and three imaging products forcancers and infectious diseases in Phase I/II clinical trials.Immunomedics has several in vitro diagnostic kits on themarket.
The preferred shares are convertible into common stock at$2.25 per share at any time. Immunomedics may redeem theshares under certain conditions beginning in 1994.
Holders of the preferred stock have the right to askImmunomedics to register the stock for sale with the Securitiesand Exchange Commission. If Immunomedics makes a publicoffering of common stock, the preferred share holders can askthe company to include their stock in the sale. -- KarenBernstein
(c) 1997 American Health Consultants. All rights reserved.