PDS Biotechnology has received about $3.9 million from NantWorks’ exercise of warrants issued in a September private placement, adding to the $11.3 million the company raised in that placement. The proceeds are intended to help advance PDS0301 toward a Phase 3 trial in metastatic colorectal cancer, support partnership efforts for PDS0101 and fund general corporate needs.
The exercise covers 17.7 million shares, though some of the securities will be pre-funded warrants rather than immediately issued common stock because of a limit on NantWorks’ ownership.
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Exercise terms: NantWorks exercised warrants at $0.22 per share, for approximately $3.9 million in gross proceeds. The warrants were issued as part of a private placement that initially closed on September 14 and brought in about $11.3 million in gross proceeds.
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Shares and pre-funded warrants: The exercise covers a total of 17,699,115 shares or pre-funded warrants in their place. The warrant terms cap NantWorks’ beneficial ownership, together with its affiliates and other related parties, at 19.9%; the limit cannot be waived. The portion that would have pushed ownership above that threshold was issued as pre-funded warrants.
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Pre-funded warrant terms: These warrants can be converted into common shares for $0.00033 per share, do not expire and remain subject to the same 19.9% ownership cap. The number of common shares issued immediately versus pre-funded warrants was not specified.
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Planned use of funds: PDS plans to combine the net proceeds with funds from the September placement to support PDS0301’s advancement toward a Phase 3 trial in metastatic colorectal cancer, its partnership strategy for PDS0101 and general corporate purposes.
The transaction provides additional capital while adding securities that may become common shares, subject to the ownership limit. The company did not announce a Phase 3 trial start date or a partnership for PDS0101.