CASI Pharmaceuticals Announces $50 Million Private Placement To Prepare Company For Commercialization In China
ROCKVILLE, Md., March 20, 2018 - CASI Pharmaceuticals, Inc. (CASI), a biopharmaceutical company dedicated to bringing high quality, cost-effective pharmaceutical products and innovative oncology therapeutics to patients, announces today a $50 million private placement. The Company has entered into definitive securities purchase agreements pursuant to which the Company will issue 15,432,091 shares of its Common Stock with accompanying warrants to purchase 6,172,832 shares of its Common Stock. The purchase price for each share of Common Stock and warrant is $3.24. The warrants will become exercisable 180 days after issuance at a $3.69 per share exercise price, and will expire five years from the date of issuance. On March 19, 2018, the consolidated closing bid price per share of Common Stock was $3.19.
The financing was led by ETP Global Fund LP, IDG-Accel China Growth Fund III, and Robert W. Duggan, former Chairman and CEO of Pharmacyclics Inc. The financing is expected to close on or about March 21, 2018. Proceeds will be used by the Company to prepare for the anticipated launch of its first commercial product in China and also for working capital general corporate purposes.
The offering of shares of Common Stock and warrants has not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws, and the shares are being offered pursuant to an exemption from registration and in reliance on similar exemptions under applicable state laws. The investors will receive certain registration rights in connection with the offering.
Wei-Wu He, Ph.D., CASI’s Executive Chairman commented, “We are grateful that seasoned investors such as IDG and Mr. Duggan share our vision for CASI and our excitement as we prepare for the launch of our first commercial product in China. Our in-licensed products, EVOMELA®, MARQIBO® and ZEVALIN® are currently in various regulatory stages for market approval in China, with EVOMELA® under priority review. We also are working on our portfolio of 29 abbreviated new drug applications (ANDAs) (including 25 FDA-approved and 4 pending approval) that we recently acquired from Sandoz, and will continue to further expand our pipeline as part of our mission to bring innovative and high-quality medicines to the market.”
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