Galena Biopharma Inc (NASDAQ:GALE), a biopharmaceutical company committed to the development and commercialization of targeted oncology therapeutics that address major medical needs, today announced that it has entered into securities purchase agreements with certain institutional investors providing for the issuance of 28,000,000 shares of common stock at a purchase price per share of $0.45 in a registered direct offering, and warrants to purchase up to 14,000,000 shares of common stock with an exercise price of $0.65 per share in a concurrent private placement, resulting in gross proceeds to the Company of $12,600,000.
The warrants are initially exercisable six months and one day following issuance and have a term of five years from the date of issuance. The closing of the sale of securities is expected to take place on or about July 13, 2016, subject to certain customary closing conditions.
The Company intends to use the net proceeds from this offering to fund its clinical trials of its product candidates, to augment its working capital, and for general corporate purposes.
Raymond James & Associates, Inc. acted as the exclusive placement agent for the offering.
Shares of Galena closed yesterday at $0.515, down $0.07 or -12.59%. GALE has a 1-year high of $2.49 and a 1-year low of $0.28. The stock’s 50-day moving average is $1.73 and its 200-day moving average is $1.26.
On the ratings front, Galena has been the subject of a number of recent research reports. In a report issued on June 29, FBR analyst Vernon Bernardino reiterated a Buy rating on GALE. Separately, on the same day, Noble Financial’s Kumaraguru Raja downgraded the stock to Hold and has a price target of $0.40.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vernon Bernardino and Kumaraguru Raja have a total average return of -19.9% and -3.2% respectively. Bernardino has a success rate of 24.4% and is ranked #3921 out of 4018 analysts, while Raja has a success rate of 60.0% and is ranked #2729.
Overall, one research analyst has assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $5.00 which is 871.6% above where the stock closed yesterday.
Galena Biopharma, Inc. is a biotechnology company focused on discovering, developing and commercializing innovative, targeted oncology treatments that address major unmet medical needs to advance cancer care. Its development portfolio ranges from mid to late stage clinical assets which include program led by NeuVax.
The company’s commercial drugs include Abstral (fentanyl) Sublingual Tablets and Zuplenz (ondansetron) Oral Soluble Film. The company focuses on identifying and advancing therapeutic opportunities to improve cancer care from direct treatment of the disease to the reduction of its debilitating side effects.
By: Corey William (Smarter Analyst).
Photo: CWRU Observer.
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