VIENNA, Va., June 24 /PRNewswire-FirstCall/ -- CEL-SCI Corporation (NYSE AMEX: CVM), a late stage cancer immunotherapy company, today announced that it has entered into a definitive agreement with one institutional investor to sell 12.5 million units, with each unit consisting of one of the Company's common shares and 0.67 warrants to purchase one share of common stock, for gross proceeds of approximately $5.0 million, before deducting placement agent fees and estimated offering expenses, in a "registered direct" offering. The investor has agreed to purchase the units at a purchase price of $0.40 per unit. The warrants, which represent the right to acquire an aggregate of up to 8.375 million common shares, will be exercisable at any time on or after 181 days from the Closing Date and prior to the 5-year anniversary at an exercise price of $0.50 per share, which was above the closing price of the Company's common shares on the NYSE AMEX Market on June 23, 2009. Chardan Capital Markets, LLC acted as placement agent for the offering.
The transaction is expected to close on or about June 29, 2009, subject to satisfaction of customary closing conditions.
Geert Kersten, Chief Executive Officer of CEL-SCI, said: "We are planning to use this money to achieve a number of major milestones, key among them are the acceleration of our H1N1 swine flu work and the validation of our manufacturing facility for contract manufacturing services and to produce our cancer drug Multikine for the planned Phase III clinical trial."
The securities described above are being offered by CEL-SCI Corporation pursuant to a registration statement previously filed and declared effective by the Securities and Exchange Commission.
This press release shall not constitute an offer to sell or the solicitation of an offe
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