CASI Pharmaceuticals, Inc. (Nasdaq: CASI), a biopharmaceutical company dedicated to the acquisition, development and commercialization of innovative therapeutics addressing cancer and other unmet medical needs for the global market with a commercial focus on China, announced that it has entered into definitive agreements with certain institutional and accredited investors, including existing shareholders, to purchase approximately $23.8 million of securities in a registered direct offering. CASI expects to receive net proceeds of approximately $23.3 million after deducting agent's fees and other offering expenses.
CASI has agreed to sell an aggregate of approximately 7,951,868 shares of its common stock and warrants to purchase shares of its common stock. Each unit, consisting of one share of common stock and a warrant to purchase 0.2 share of common stock will be sold for a purchase price of $3.00. The warrants will become exercisable six months after the issuance date and have a term of 2.5 years and an exercise price equal to $3.75. The offering is expected to close on or about October 17, 2017, subject to satisfaction of customary closing conditions.
Dr. Wei-Wu He, the Company's Chairman, stated, 'We are pleased with the return of our investors and the positive momentum of our Company. We intend to use the net proceeds to support our business development activities and drive the Company's continued growth. We also are pleased with the China FDA's recent public guidance that in its efforts to accelerate approvals for imported drugs, it plans to accept data from clinical trials outside of China. We believe this could potentially accelerate our pipeline of U.S. approved drugs that are currently under China FDA review, namely EVOMELA®, which has been granted priority review; and MARQIBO® and ZEVALIN®. We look forward to accelerating these medicines to the second largest pharmaceutical market, and will continue to add on to our pipeline."
HC Wainwright acted as exclusive placement agent in this transaction. A shelf registration statement containing a prospectus relating to the shares of common stock and warrants to be issued in this transaction (and the shares of common stock issuable upon exercise of the warrants) has been filed with the Securities and Exchange Commission (the "SEC") and declared effective on October 15, 2015. A prospectus supplement relating to the offering will be filed by CASI with the SEC. Copies of the prospectus and prospectus supplement and accompanying prospectuses may be obtained directly from. This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities of CASI. No offer, solicitation or sale will be made in any jurisdiction in which such offer, solicitation or sale is unlawful.
About CASI Pharmaceuticals, Inc.
CASI is a U.S. based, late-stage biopharmaceutical company focused on the acquisition, development and commercialization of innovative therapeutics addressing cancer and other unmet medical needs for the global market with a focus on commercialization in China. CASI's product pipeline features (1) EVOMELA®, MARQIBO® and ZEVALIN®, all U.S. Food and Drug Administration (FDA) approved drugs in-licensed from Spectrum Pharmaceuticals, Inc. for China regional rights, and currently in various stages in the regulatory and clinical process for market approval in China, (2) CASI-001 and CASI-002, proprietary preclinical candidates in immune-oncology, and (3) our proprietary drug candidate, ENMD-2076, ongoing in one Phase 2 clinical study. CASI is headquartered in Rockville, Maryland and has a wholly owned subsidiary and R&D operations in Beijing, China. More information on CASI is available at www.casipharmaceuticals.com and in CASI's filings with the U.S. Securities and Exchange Commission.
