By Sheri Kasprzak
New York, May 30 - Vical Inc. has concluded the first tranche of a $10.85 million private placement for $6.9 million. The offering is being conducted as part of a research and development agreement with AnGes MG Inc.
AnGes bought 1,061,539 shares at $6.50 each and will buy another $3.95 million in stock at a price equal to the volume weighted average price for the 30 trading days before the second closing.
The second closing will occur once Vical obtains shareholder approval.
The placement is part of Vical's research and development agreement with AnGes for Vical's Allovectin-7R cancer immunotherapeutic.
Under the agreement, AnGes will fund the phase 3 pivotal trial, which will be conducted in the United States. AnGes will retain marketing rights for Allovectin-7R in certain Asian countries. Vical will receive royalties of up to $77.5 million in total sales milestones based on the net sales in those Asian countries.
The total funding will be $22.6 million with a portion of that coming from the private placement.
Based in San Diego, Vical is a biopharmaceutical company focused on developing treatments for melanoma and other types of cancer.
| Issuer: | Vical Inc.
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| Issue: | Stock
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| Amount: | $6.9 million
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| Shares: | 1,061,539
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| Price: | $6.50
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| Warrants: | No
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| Investor: | AnGes MG Inc.
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| Settlement date: | May 30 (for first tranche)
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| Stock symbol: | Nasdaq: VICL
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| Stock price: | $6.55 at close May 30
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