- Public offering of new shares with warrant attached
- Subscription ratio: 2 new shares with warrant attached for 5 existing shares
- Subscription price: 2.00 euros per new share with warrant attached
- Subscription period: February 1st to February 14, 2017 (included)
Valbonne, France, January 25, 2017
TxCell SA ( “the Company” – FR0010127662 – TXCL), a biotechnology company developing innovative, personalized cellular immunotherapies using regulatory T cells (Treg) to treat severe chronic inflammatory and autoimmune diseases, today announces the launch of a capital increase through the issue of new shares (“New Shares”) with warrants attached (“Warrants”) with shareholders’ preferential subscription rights (“Rights”). The issue is expected to raise gross proceeds of approximately 11 million euros should all the New Shares with Warrant attached (“New Shares with Warrant”) be subscribed for.
Stéphane Boissel, CEO of TxCell commented: “Over the past 18 months, TxCell has completed a major strategic refocusing to concentrate solely on its high-potential R&D activities. Our platform of genetically modified regulatory T cells (Treg), called CAR-Treg cells by analogy with the CAR-T cells finding increasing favor in oncology, is now TxCell’s primary focus. Not only does this technological advance allow us to target new diseases, it also significantly reduces the complexity of the manufacturing process—a key success factor in cell therapy. Today we are launching a capital increase to fund the completion of several in vivo proofs of concept with CAR-Tregs, as well as the development of a manufacturing process for these CAR Tregs. The aim is to complete all the groundwork to launch a first clinical trial by the end of 2018. We believe that this would be the first-ever clinical study with a CAR-Treg worldwide. CAR-Tregs could address medical needs in transplantation and autoimmunity. These areas account for over one hundred diseases and a global market worth more than 100 billion of annual sales , which is growing at a rate of over 5% per year.”
The terms of the capital increase with shareholders’ preferential subscription rights are presented in the prospectus approved by the French financial market authority (Autorité des marchés financiers - AMF) on January 24, 2017 under number 17-030, comprised of the registration document registered on May 24, 2016 under number R.16-048, the update of the registration document filed on January 24, 2017 and a securities note (including a summary of the prospectus).
The issue will allow TxCell to cover the costs of the CAR-Treg research and manufacturing process development programs, and the Company’s ongoing expenses and overhead over the coming 12 months.
The issuance of the Warrants attached to the New Shares will allow shareholders to benefit from TxCell’s future development. The proceeds from the exercise of all the Warrants (10,821,135 euros should the issue be fully subscribed, which may be increased to a maximum amount of 12,444,299 euros should the extension clause be fully exercised), would enable TxCell to finance its activities through to the award of regulatory approval for a first-in-man study with a CAR-Treg candidate, which is expected by the end of 2018.
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