ProMIS Neurosciences announces up to $122.7M private placement financing

ProMIS Neurosciences announced that it has entered into a unit purchase agreement with certain new and existing institutional and accredited investors to issue and sell an aggregate of approximately $30.3 million of common share units with each Common Share Unit consisting of one Common Share, without par value, one Tranche A Common Share purchase warrant to purchase one Common Share, one Tranche B Common Share purchase warrant to purchase one Common Share and one Tranche C Common Share purchase warrant to purchase one Common Share and, for certain investors, pre-funded units, with each Pre-Funded Unit consisting of one Pre-Funded Warrant to purchase one Common Share, one Tranche A Common Share purchase warrant to purchase one Common Share, one Tranche B Common Share purchase warrant to purchase one Common Share and one Tranche C Common Share purchase warrant to purchase one Common Share. The Common Share Units were sold at a price of $2.15 per Unit and the Pre-Funded Units were sold at a price of $2.14 per Unit through a private investment in public equity financing.The Pre-Funded Warrants have an exercise price of $0.01 per Warrant Share, are immediately exercisable and will expire when exercised in full. The Tranche A Common Share purchase warrants have an exercise price of $2.02, are exercisable immediately upon Shareholder Approval and will expire upon the earlier of 18 months or within 60 days of the public announcement via press release or the filing of a Current Report on Form 8-K of 6-month data from the cohorts treated with multiple ascending doses of PMN310. The Tranche B Common Share purchase warrants have an exercise price of $2.02, are exercisable immediately upon Shareholder Approval and will expire upon the earlier of 30 months or within 60 days of the public announcement via press release or the filing of a Current Report on Form 8-K of 12-month data from the cohorts treated with multiple ascending doses of PMN310. The Tranche C Common Share purchase warrants have an exercise price of $2.50, are immediately exercisable and will expire July 31, 2029. Pursuant to Nasdaq Listing Rule 5635(d), the exercise of the Tranche A and Tranche B Common Share purchase warrants is subject to shareholder approval. The PIPE financing included participation from new and existing healthcare specialist investors such as Great Point Partners, LLC, Armistice Capital, Ally Bridge Group, Sphera Healthcare, and other institutional and individual accredited investors. ProMIS anticipates the gross proceeds from the PIPE financing to be approximately $30.3 million, before deducting fees to the placement agents and other offering expenses payable by the Company, and up to an additional approximately $92.4 million in gross proceeds if the Warrants are fully exercised for cash, subject to Shareholder Approval of certain of the Warrants. The financing is expected to close on July 31, 2024, subject to customary closing conditions. Guggenheim Securities, LLC acted as lead placement agent and Ceros Financial Services, Inc. and Leede Financial Inc. acted as placement agents in the PIPE financing. Proceeds from the PIPE financing are expected to be used to advance the clinical development of PMN310, ProMIS’ lead therapeutic candidate, as well as for working capital and other general corporate expenses.