BOCA RATON, FL - INmune Bio, Inc. (NASDAQ:INMB), a clinical-stage immunology company, today announced a registered direct offering of approximately $4.8 million. The transaction involves the sale of 571,592 shares of common stock at a price of $8.32 per share, based on the Nasdaq closing bid price as of last Friday, April 19, 2024.
In addition to the shares, investors will receive warrants to purchase an equal number of additional shares at an exercise price of $9.152, which is 10% higher than the offering price. These warrants will expire on the earlier of two years from the initial exercise date or thirty trading days following the release of top-line data from the company's Phase 2 Alzheimer's program for its drug candidate XPro1595.
The offering is expected to close around Wednesday, April 24, 2024, subject to standard closing conditions. Notably, members of INmune Bio's management and board, as well as certain key employees, participated in the offering, purchasing shares and warrants at a combined price of $8.445 each.
The proceeds from this offering are earmarked for the completion of the ongoing Phase 2 trial in Early Alzheimer's Disease using XPro1595 and the Phase 1 trial for metastatic castration-resistant prostate cancer using INKmune technology.
INmune Bio's product platforms are designed to leverage the innate immune system for treating a variety of diseases, including cancer and chronic inflammation. The company emphasizes that its clinical trials are in the early stages and that there is no guarantee of specific outcomes.
This news is based on a press release statement by INmune Bio, Inc.
InvestingPro Insights
As INmune Bio, Inc. (NASDAQ:INMB) navigates its latest registered direct offering, investors may find it valuable to consider key metrics and insights from InvestingPro. With a market capitalization of approximately $150.88 million, the company's financial health and stock performance offer a mixed picture. The InvestingPro Tips suggest that INMB holds more cash than debt, which is a positive sign for potential and current investors, as it indicates a level of financial stability. Additionally, the stock's recent entry into oversold territory, as indicated by the Relative Strength Index (RSI), may capture the attention of investors looking for potential entry points.
However, the challenges are evident as well, with analysts not expecting the company to be profitable this year and the stock having experienced significant declines over the last week and month. The data reflects these sentiments, with a notable revenue decline of -58.56% over the last twelve months as of Q4 2023. Moreover, the stock's Price/Earnings (P/E) ratio stands at -5.03, reinforcing the lack of profitability in the near term. Despite these hurdles, the company's liquid assets surpassing short-term obligations is an InvestingPro Tip that may reassure investors of INmune Bio's ability to meet its immediate financial commitments.
For those considering an investment in INmune Bio, it's worth noting that the company does not pay dividends, which may influence the decision-making process for income-focused investors. For a deeper analysis and additional insights, there are 9 more InvestingPro Tips available for INMB at InvestingPro, which can be accessed with a subscription. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive investment analysis tool.
With the next earnings date approaching on May 1, 2024, and a fair value estimate from analysts at $21 USD, which contrasts with the InvestingPro fair value of $10.34 USD, investors will be watching closely to see how the company's strategic efforts unfold in the coming months.
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