IDM Pharma to raise $25M in direct offering

California, USA-based IDM Pharma, says it has obtained definitive agreements from investors to purchase around 7.1 million shares of its common stock. Under the terms of the offering, IDM will also issue five-year warrants to buy an aggregate of about 2.4 million additional shares at an exercise price of $4.06 each. The shares of common stock and warrants will be purchased at the negotiated price of $3.50 per unit. The completion of the transaction is expected to take place on or about June 25, subject to the satisfaction of customary closing conditions.

The shares and warrants are being offered under an effective shelf registration statement previously filed with the Securities and Exchange Commission. Rodman & Renshaw served as sole placement agent.

IDM estimates net proceeds from the financing will be approximately $23.5 million after deducting placement agent fees and offering expenses. The company intends to use these for working capital and general corporate purposes, including its activities related to gaining marketing approval of its lead product candidate, MTP-PE (mifamurtide for injection), formerly known as Junovan in the USA and known as MEPACT in Europe, in both the market regions.