ImmunityBio (NASDAQ:IBRX) shares have risen by almost 15% in the pre-market session today after the biotechnology company executed financing transactions that would result in proceeds of $200 million to IBRX while also deleveraging its balance sheet.
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These transactions include the exchange of current debt for equity and the issuance of new convertible debt from Nant Capital. Nant is affiliated with IBRX’s Founder, Executive Chairman, and Global Chief Scientific and Medical Officer, Dr. Patrick Soon-Shiong.
This move also extends the maturity of IBRX’s current debt. The newly issued $200 million convertible note has a term of three years and can be converted into IBRX shares at a 50% premium over the stock’s closing price preceding the note. Additionally, this financing maneuver restructures IBRX’s existing debt with Nant.
The company has exchanged promissory note obligations with Nant, to the tune of $270 million, into its common shares. This strategic move is significant as it provides IBRX with enough dry powder to fund its operations and execute pre-commercialization efforts for potential regulatory approval of N-803 plus BCG. That treatment is targeted for BCG (Bacillus Calmette-Guerin) unresponsive non-muscle invasive bladder cancer (NMIBC).
Today’s price gains come after a nearly 55% nosedive in ImmunityBio shares over the past three months.
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