On December 17, 2020 SELLAS Life Sciences Group, Inc. (Nasdaq: SLS) ("SELLAS" or the "Company"), a clinical-stage biopharmaceutical company focused on the development of novel cancer immunotherapies for a broad range of cancer indications, reported the closing on December 16, 2020 of a registered direct offering of common stock of the Company for net proceeds of approximately $14.9 million, after deducting placement agent fees and other estimated offering expenses (Press release, Sellas Life Sciences, DEC 17, 2020, View Source [SID1234572981]). SELLAS also announced the exercise, as of December 16, 2020, of outstanding warrants for net proceeds to the Company of approximately $8.1 million. Following the issuance of shares of common stock in the registered direct offering and upon the exercise of warrants, there are currently 14,194,610 shares of common stock of the Company outstanding. SELLAS previously announced on December 7, 2020 that it had entered into an Exclusive License Agreement granting rights to 3D Medicines, Inc. to develop and commercialize galinpepimut-S (GPS), its lead late-stage clinical candidate, as well as its next generation heptavalent immunotherapeutic, GPS+, in the Greater China territory (mainland China, Hong Kong, Macau and Taiwan). Under the terms of the License Agreement, SELLAS expects to receive prior to year-end a non-dilutive license fee of $7.5 million.
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Proceeds from the registered direct offering and the warrant exercises, together with the upfront license fee from 3D Medicines, will be used to fund the Company’s development programs for GPS, including the ongoing pivotal global Phase 3 clinical trial (the REGAL study) of GPS in patients with acute myeloid leukemia (AML) who have reached second complete remission, as well as regulatory- and CMC-related preparatory projects supporting a future potential GPS biologics licensing application (BLA) filing for GPS, assuming positive data from the REGAL study.
"We are pleased that we have been able to significantly strengthen our balance sheet with the proceeds from the registered direct offering of common stock and the warrant exercises as well as the expected upfront license fee. These proceeds, together with our current cash, will allow us to aggressively execute on our clinical development plans, including taking steps to mitigate, to the extent possible, the impact of the COVID-19 pandemic on our clinical trial timelines as well as, among other things, to begin preparations for potential regulatory filings around our Phase 3 REGAL AML study," commented Angelos Stergiou, MD, ScD h.c., President and Chief Executive Officer of SELLAS.