ORLANDO, Fla., April 20, 2018 (GLOBE NEWSWIRE) -- Hemispherx Biopharma, Inc. (NYSE American:HEB), a research and development and emerging commercial growth company focused on unmet medical needs in immunology, with a special emphasis in immune-oncology, announced today it has entered into a securities purchase agreement with certain accredited institutional investors to purchase approximately $2.57 million of its common stock in a registered direct offering and concurrent private placement at a premium to market.
Under the terms of the purchase agreement, Hemispherx has agreed to sell approximately 6,600,000 shares of its common stock. In a concurrent private placement, Hemispherx has agreed to issue Class A common stock purchase warrants to purchase up to an aggregate of 3,300,000 shares of common stock and Class B common stock purchase warrants to purchase up to an aggregate of 3,300,000 shares of common stock. All warrants will be exercisable six months following the date of issuance and have an exercise price of $0.39 per share. The Class A warrants will expire on the 2-year anniversary of the initial issuance date and the Class B warrants will expire on the 5-year anniversary of the initial issuance date. The combined purchase price for one share of common stock and each warrant will be priced above market at $0.39.
The gross proceeds to Hemispherx from the registered direct offering and concurrent private placement are estimated to be approximately $2.57 million before deducting the placement agents’ fees and other estimated offering expenses. The registered direct offering and concurrent private placement is expected to close on or about April 24, 2018, subject to the satisfaction of customary closing conditions.
Maxim Group LLC is acting as sole placement agent for the offering.
About Hemispherx Biopharma
Hemispherx Biopharma, Inc. is an advanced specialty pharmaceutical company engaged in the clinical development of new drug entities for treatment of seriously debilitating disorders. Hemispherx's flagship products include the FDA approved drug Alferon N Injection® and the Argentina approved drug rintatolimod (tradenames Ampligen® or Rintamod®). Rintatolimod is a RNA nucleic acid being developed for globally important debilitating diseases and disorders of the immune system, including Myalgic Encephalomyelitis/Chronic Fatigue Syndrome (ME/CFS). Hemispherx's platform technology includes components for potential treatment of various severely debilitating and life threatening diseases. Because rintatolimod has not been designated safe and effective by the FDA for general use, it is legally available in the United States only through clinical trials, however, Ampligen has been approved in Argentina for ME/CFS and the company is working toward legal access in other countries where early access programs exist for serious diseases such as ME/CFS where there are unmet medical needs. Ampligen is the only therapy approved anywhere in the world for ME/CFS. Also, an Ampligen EAP approval has been obtained for therapeutic use in the Netherlands for pancreatic cancer.
