On August 3, 2020 Advaxis, Inc. (Nasdaq: ADXS), a clinical-stage biotechnology company focused on the development and commercialization of immunotherapy products reported that it has entered into a common stock purchase agreement for up to $20 million with Lincoln Park Capital Fund, LLC (LPC), a Chicago-based institutional investor (Press release, Advaxis, AUG 3, 2020, View Source [SID1234562689]). Upon execution of the purchase agreement, Lincoln Park made an initial purchase of $2 million of common stock at $0.57 per share.
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Under the terms of the purchase agreement, Advaxis will have the right at its sole discretion, but not the obligation, to sell to LPC up to $20 million worth of shares over the 36-month term of the agreement, subject to certain conditions. There are no upper limits to the price per share LPC may pay to purchase the shares, and the purchase price of the shares will be based on the prevailing market prices at the time of each sale to LPC. Advaxis controls the timing and amount of any future sales of its stock to LPC.
There are no warrants, derivatives, financial or business covenants associated with the agreement, and LPC has agreed not to cause or engage in any direct or indirect short selling or hedging of Advaxis’ common stock. Advaxis may terminate the purchase agreement at any time, at its discretion, without any cost or penalty. In consideration for LPC entering into the purchase agreement, Advaxis issued shares of its common stock to LPC as a fee for LPC’s obligation to purchase shares at the Company’s discretion.
Advaxis intends to use any net proceeds from the sale of its common stock to LPC to advance its ADXS-HOT program and for general corporate purposes.
Additional information regarding the purchase agreement with LPC is available in the Current Report on Form 8-K that Advaxis will file with the Securities and Exchange Commission.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any shares of common stock, nor shall there be any sale of shares of common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.