ImmunoGen, Inc. (NASDAQ:IMGN) reported the pricing of an underwritten public offering of 14.50 million shares at a price of $6.50 per share, leaving underwriting discounts. In addition, the company has granted the underwriters a 30-day alternative to purchase up to an additional 2.175 million shares of at the public offering price, minus the underwriting discount.
ImmunoGen anticipates the aggregate gross proceeds will be approximately $94.3 million, discounting any exercise of the underwriters’ alternative to purchase additional shares. The company expects utilizing the net proceeds of the offering, coupled with its existing capital, to support its operations, including, but not confined to, clinical trial activities, research and development activities, supply and manufacturing of drug products and drug substance, acquisitions of new technologies, commercialization preparation, working capital and capital expenditures.
Jefferies, RBC Capital Markets and Leerink Partners will be joint book-running managers for the public offering. Canaccord Genuity will be the sole co-manager for the offering. The public offering is anticipated to close on or around October 11, 2017, dependent on satisfaction of customary closing conditions.
In an unrelated news, ImmunoGen reported that it has finalized exchange deals with a limited count of holders of its 4.50% Convertible Senior Notes payable 2021. The firm will exchange around $76.4 million in aggregate amount of notes for around 16.5 million newly issued shares plus an additional count of newly issued shares grounded on the volume-weighted average trading rate over the four trading sessions commencing on September 5. Exchanges will be done on or around September 11. Upon closure, the principal amount is expected to be reduced to around $23.6 million.
In the last trading session, the stock price of ImmunoGen declined more than 2% to close the day at $6.85. The decline came at a share volume of 13.66 million compared to average share volume of 4.61 million.