OXFORDSHIRE - Immunocore Holdings plc (NASDAQ:IMCR), a biotechnology company, has upsized its offering of convertible senior notes to $350 million, a rise from the previously announced $300 million, according to a press release statement. The offering includes 2.50% convertible senior notes due in 2030, available to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
The notes are set to accrue interest semi-annually and will mature on February 1, 2030, unless converted, redeemed, or repurchased prior. The initial conversion rate is set at 10.5601 American Depositary Shares (ADSs) per $1,000 principal amount of notes, which is equivalent to an initial conversion price of roughly $94.70 per ADS. This rate is a 40% premium over the last reported sale price of Immunocore's ADSs on January 30, 2024.
Immunocore has also granted the initial purchasers an option to buy an additional $52.5 million in notes within 13 days from the issue date. The closing of the sale, subject to customary conditions, is expected on February 2, 2024.
The company may not redeem the notes before February 5, 2027, except under certain tax law changes. Post-February 5, 2027, Immunocore has the option to redeem the notes for cash if the ADSs' sale price exceeds a set threshold. In the event of a 'fundamental change', holders may require Immunocore to repurchase their notes at the principal amount plus accrued interest.
Immunocore anticipates net proceeds of approximately $338.4 million, or $389.3 million if the additional notes option is exercised in full. The funds, along with existing cash, are intended to accelerate clinical pipelines and support commercial expansion. Immunocore also plans to repay outstanding loans under its agreement with Pharmakon Advisors, LP, and allocate any remaining proceeds for working capital and other corporate purposes.
The notes, ADSs deliverable upon conversion, and the ordinary shares they represent will not be registered under the Securities Act or any other securities laws and cannot be offered or sold without registration or an applicable exemption.
Immunocore is known for developing ImmTAX, a novel class of TCR bispecific immunotherapies aimed at treating a variety of diseases, including cancer, autoimmune, and infectious diseases. Its most advanced oncology therapeutic, KIMMTRAK, has been approved in several regions for treating certain melanoma patients.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
In light of Immunocore Holdings plc's recent announcement to upsize its convertible senior notes offering, current and prospective investors might find additional context from InvestingPro data and tips valuable. The company holds a market capitalization of $3.34 billion, indicative of its significant presence in the biotech industry. Despite a lack of profitability over the last twelve months, with a negative P/E ratio of -48.34, the company has shown impressive revenue growth of 87.6% over the same period. This growth trajectory underscores the company's potential to capitalize on its clinical pipelines and commercial expansion plans.
InvestingPro Tips suggest that Immunocore's liquid assets exceed its short-term obligations, which could provide financial flexibility in pursuing its strategic goals. Moreover, the company's strong return over the last three months, with a price total return of 52.34%, reflects positive investor sentiment. However, it's important to note that analysts are not expecting the company to be profitable this year, and it does not pay a dividend to shareholders, which could be relevant considerations for income-focused investors.
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