BriaCell sets price for $5 million share and warrant offering

PHILADELPHIA and VANCOUVER, British Columbia - BriaCell Therapeutics Corp. (NASDAQ: BCTX, BCTXW) (TSX: BCT), a clinical-stage biotechnology company specializing in novel immunotherapies for cancer treatment, announced today the pricing of its public offering. The company has priced its offering of 5,128,500 common shares and warrants to purchase an equivalent number of shares, with gross proceeds expected to reach approximately $5 million before deductions for fees and other expenses.

The combined offering price is set at $0.975 per share and associated warrant, adhering to the market pricing rules of Nasdaq. Warrants issued in this offering will have an exercise price of $0.85 per share and are immediately exercisable upon issuance, remaining valid for a period of five years from the date of issuance.

BriaCell anticipates the offering to close on October 2, 2024, pending the fulfillment of customary closing conditions. The company is utilizing an exemption as per Section 602.1 of the TSX Company Manual due to its status as an interlisted issuer on Nasdaq, which allows certain transactions to bypass the usual TSX standards.

The net proceeds from the offering are intended for general corporate purposes, working capital requirements, and furthering business objectives. ThinkEquity is serving as the sole placement agent for the transaction.

The securities are offered pursuant to a shelf registration statement on Form S-3, filed with the U.S. Securities and Exchange Commission (SEC) on January 22, 2024, and declared effective on January 31, 2024. Prospective investors can access the final prospectus supplement and accompanying prospectus related to the offering through the SEC's website.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, and there will be no sale of these securities in any state or jurisdiction where such an offer, solicitation, or sale would be illegal before registration or qualification under the securities laws of any such state or jurisdiction.

BriaCell's forward-looking statements within the press release are subject to significant risks and uncertainties, and there is no guarantee that the offering will be completed as planned or at all. The information in this article is based on a press release statement.

In other recent news, BriaCell Therapeutics Corp. has made significant strides in the development of its immunotherapy candidate Bria-PROS+™ for advanced prostate cancer. The U.S. Food and Drug Administration (FDA) has offered positive feedback and waived the requirement for animal toxicology and pharmacokinetic studies. This decision simplifies the path for BriaCell to file an Investigational New Drug (IND) application and proceed with a Phase 1/2 clinical study of Bria-PROS+™.

In addition to this, BriaCell has set the price for its $8.5 million common share offering. The company is offering 12,325,000 common shares, including Pre-Funded Warrants, at a price of $0.69 per share. The proceeds are earmarked for working capital, general corporate purposes, and to further the company's business objectives. ThinkEquity is serving as the sole placement agent for the transaction.

These recent developments highlight BriaCell's ongoing commitment to advancing immunotherapies in cancer care. It is important to note that while these developments are promising, they are subject to risks, uncertainties, and changes.

InvestingPro Insights

As BriaCell Therapeutics Corp. (NASDAQ: BCTX, TSX: BCT) announces its public offering, investors should consider some key financial metrics and trends highlighted by InvestingPro.

The company's market capitalization stands at a modest $2.45 million, reflecting its status as a small-cap biotechnology firm. This relatively small size is not uncommon for clinical-stage biotech companies, which often require significant capital to fund their research and development efforts.

InvestingPro data reveals that BriaCell's revenue for the last twelve months as of Q4 2024 was $0.32 million, with a concerning revenue growth decline of -47.03% over the same period. This negative growth trend is further emphasized by a quarterly revenue decline of -59.76% in Q4 2024. These figures underscore the company's current financial challenges and the importance of the newly announced public offering in securing additional funding.

Two relevant InvestingPro Tips shed light on BriaCell's financial situation:

1. The company is quickly burning through cash, which aligns with the need for this public offering to raise approximately $5 million.

2. Analysts do not anticipate the company will be profitable this year, highlighting the speculative nature of investing in early-stage biotech firms.

These insights, along with 13 additional tips available on InvestingPro, provide valuable context for investors considering BriaCell's offering. The company's focus on novel immunotherapies for cancer treatment presents potential long-term value, but investors should be aware of the current financial risks and market performance challenges.

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