Immunic announces private placement of up to $240M

Immunic announced it has entered into a securities purchase agreement with select accredited investors to purchase shares of common stock in a three-tranche offering. The first tranche is an upfront payment of $80M at $1.43 per share, which is expected to close on January 8, subject to customary closing conditions. The second tranche is a mandatory purchase of an additional $80M of shares of common stock at $1.716 per share, representing 120% of the first tranche purchase price and is conditioned on the announcement of phase 2b topline data for the company’s vidofludimus calcium progressive multiple sclerosis clinical trial, volume weighted average share price levels, and minimum trading volumes. A third tranche, to occur no later than three years after the second tranche, provides for the issuance of $80M of shares of common stock at the same price per share as the second tranche, but permits investors to fund their purchase obligations on a “cashless” or net settlement basis, which would reduce the proceeds to be raised in the financing. The third tranche is conditioned on the same volume weighted average share price levels and minimum trading volumes as the second tranche. Assuming that the second tranche is exercised, and depending on the extent to which the investors elect to fund the third tranche through a net settlement basis, total gross proceeds from the offering to the company would be between $160M and $240M.