PharmaCyte Biotech closes $7 million financing to strengthen position

Published 20/08/2025, 14:34
PharmaCyte Biotech closes $7 million financing to strengthen position

LAS VEGAS - PharmaCyte Biotech, Inc. (NASDAQ:PMCB) announced Wednesday the closing of its previously announced $7 million financing round, bolstering its financial position. The company’s stock has shown strong momentum recently, posting an impressive 19% gain over the past week according to InvestingPro data.

The biopharmaceutical company reported it held approximately $15.5 million in cash and over $30 million in securities as of April 30, 2025, according to its most recent 10K filing. With the addition of the $7 million in proceeds, PharmaCyte has enhanced its balance sheet to support ongoing business initiatives. The company maintains a strong financial position with a current ratio of 7.7x and holds more cash than debt, according to InvestingPro analysis, which rates the company’s overall financial health as "GREAT."

"The successful completion of this financing is a welcome milestone as we continue on our growth trajectory," said Josh Silverman, Interim Chief Executive Officer of PharmaCyte. "We expect this additional capital, combined with our substantially reduced operational burn rate and our existing cash position and investments, to bring substantial value to our shareholders." This focus on shareholder value appears timely, as InvestingPro’s Fair Value analysis suggests the stock is currently undervalued.

Following the financing, PharmaCyte reported approximately 6.8 million shares of common stock outstanding.

The company faces several challenges, including addressing FDA issues to remove a clinical hold on its Investigational New Drug application, according to the press release statement. PharmaCyte is also exploring additional opportunities to create new paths toward shareholder value.

PharmaCyte Biotech is a biotechnology company focused on developing cellular therapies for cancer and diabetes using its signature live-cell encapsulation technology.

In other recent news, PharmaCyte Biotech has secured $7 million in financing through a private placement agreement with existing investors. The transaction involves the sale of 7,000 shares of newly designated Series C convertible preferred stock, each with a stated value of $1,000. These shares are convertible into a total of 7 million shares of common stock at a conversion price of $1.00 per share. This development marks a significant financial move for PharmaCyte Biotech, as it strengthens its capital position. The company did not disclose any immediate plans for the use of the newly acquired funds. This financing agreement reflects continued investor interest in PharmaCyte Biotech’s potential. No further details about the transaction were provided in the announcement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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