NEW YORK - SELLAS Life Sciences Group, Inc. (NASDAQ:SLS), a biopharmaceutical company with a market capitalization of $81 million engaged in developing cancer therapies, has announced a registered direct offering to a healthcare-focused institutional investor. The stock has shown remarkable momentum, delivering a 179% return over the past year according to InvestingPro data. The transaction involves the sale of approximately 19.7 million shares and equivalent warrants, with the closing expected around January 29, 2025. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.26, suggesting robust short-term financial stability. Subscribers can access 12 additional ProTips and comprehensive financial metrics.
At a combined price of $1.27 per share and accompanying warrant, the offering is priced at-the-market under Nasdaq rules. The warrants, exercisable at $1.20 per share, will be valid immediately upon issuance and expire five years from the date of issuance.
SELLAS anticipates gross proceeds of about $25 million before deducting fees and other estimated expenses. The company plans to allocate the net proceeds for working capital and general corporate purposes, which may include future acquisitions. Analysts maintain a bullish outlook, with price targets ranging from $4 to $7.50 per share.
A.G.P./Alliance Global Partners (NYSE:GLP) is the lead placement agent, with Maxim Group LLC acting as co-placement agent. The offering is in accordance with an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC).
The company's lead product candidate, GPS, is licensed from Memorial Sloan Kettering Cancer Center and targets the WT1 protein found in various tumor types. SELLAS is also developing SLS009, a potential first-in-class CDK9 inhibitor.
This press release does not serve as an offer to sell or a solicitation of an offer to buy securities and is based on a press release statement. The sale of these securities will not be conducted in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Based on InvestingPro's Fair Value analysis, the stock appears to be trading near its fair value, with a beta of 2.41 indicating higher volatility compared to the broader market.
In other recent news, SELLAS Life Sciences Group has reported significant updates on its drug development programs. The biopharmaceutical company's Phase 3 REGAL trial of GPS in Acute Myeloid Leukemia (AML) continues unmodified, despite a negative market response. The interim analysis, conducted after 60 events in the study population, supported the continuation of the study. The IDMC found that the data supported the continuation of the study according to its original protocol.
Additionally, SELLAS has amended severance agreements for two of its top executives, Dragan Cicic and John Burns. The amendments now provide for a severance payment equivalent to 15 months of the executives' current base salary if they are terminated in connection with a change of control of the company.
In another development, SELLAS has announced an update on the progress of its novel cancer therapies, highlighting upcoming clinical milestones for 2025. The company's REGAL study, focusing on the immunotherapeutic agent Galinpepimut-S (GPS), targets patients with AML who have achieved complete remission following second-line salvage therapy.
Furthermore, SELLAS has reached a significant milestone in its Phase 3 REGAL clinical trial for acute myeloid leukemia (AML). The trial has met the pre-specified threshold of 60 events (deaths), which will prompt an interim analysis by the Independent (LON:IOG) Data Monitoring Committee (IDMC).
Lastly, SELLAS has announced encouraging new data from their Phase 2 clinical trial for the investigational drug SLS009. The latest results from the trial indicate that the median overall survival (mOS) for patients in the 30 mg BIW cohort has not yet been reached but now exceeds 7.7 months. This figure stands out against the historically expected mOS of approximately 2.5 months for patients in similar conditions.
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