IDM Pharma raises $12.8 million

California, USA-based IDM Pharma has closed a private placement with a group of accredited investors. Participants included both new investors, led by Palo Alto Investors, as well as existing group Alta Partners. The company received around $12.8 million in gross proceeds from the sale of about 4.5 million shares of its common stock priced at $2.82 each, the closing bid price of IDM common stock immediately preceding the transaction. The company also issued warrants to these investors for the purchase of approximately 782,500 additional IDM shares priced at $0.022 per share, which is equal to $0.125 per share multiplied by the percentage of warrant coverage. The warrants have an exercise price of $3.243 each.

Jean-Loup Romet-Lemonne, IDM's chief executive, said that "the funds from this transaction should provide us with additional financial flexibility to support the development of our lead compound, Junovan [a liposomal formulation of muramyl tripeptide phosphatidylethanolamine], through the registration process by the regulatory agencies."