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Recent Struggles Remain Evident.
9/12/17 Announces $2M Direct Offering @$0.50 via Laidlaw.
9/12/17 Presents at Rodman Conference.
9/6/17 Engages Greenhill & Co. ($GHL) as Advisor.
7/24/17 Announces Plan to Hire Advisor.
Yesterday, MabVax $MBVX announced that it has agreed to sell approximately 4.0 million shares of its common stock for gross proceeds of approximately $2.0 million. Each share of common stock is being sold at a price of $0.50 per share.
The shares traded down 18% from $0.66 to a close of $0.57. This is a heads-up and recap of select excerpts, from select recent news headlines, which we found interesting.
On September 12th, the Company announced the net proceeds from the offering, after deducting estimated offering expenses, will be approximately $1.9 million. The offering is expected to close on or about September 14, 2017.
MabVax stated it intends to use the net proceeds of the offering to fund continuing clinical development of its HuMab 5B1 antibody designated MVT-5873 in combination with gemcitabine and nab-paclitaxal in first line therapy for the treatment of patients newly diagnosed with pancreatic cancer. The Company has treated two cohorts of patients for a total of six patients to date in this study; and these funds will enable the Company to enroll an additional cohort of patients with the objective of confirming early observations. The additional funding will also support the continued clinical development of the Company's radioimmunotherapy product designated as MVT-1075 for the treatment of locally advanced or metastatic pancreatic cancer patients. MabVax initiated the phase I study of MVT-1075 in June 2017 and intends to treat additional patients to continue to assess the safety and potential efficacy of this treatment. Funds will also be used for general corporate purposes.
On September 12th, the Company announced that David Hansen, MabVax's President and Chief Executive Officer would present at the 19th Annual Rodman & Renshaw Global Investment Conference, sponsored by H.C. Wainwright & Co., LLC on Tuesday, September 12, 2017 at 2:35 PM ET. The conference was held on September 10-12, 2017 at Lotte New York Palace Hotel in New York City.
In the same release, the Company reminded readers that it "..recently announced that it has engaged Greenhill & Co. (GHL) (NYSE: GHL) to assist the Company in evaluating strategic options currently being considered by the Company to improve stockholder value, as well as identifying new opportunities which could include the acquisition of MabVax by another company, the sale or divestiture of specific assets coupled with a reverse merger, merging with another company, or licensing of selected technologies, or a combination of selected divestitures followed by a reverse merger."
On September 6th, the Company announced that engaged Greenhill & Co.to serve as a financial advisor to assist the Company in exploring and evaluating strategic options with the goal of maximizing shareholder value.
The Company additionally stated "Greenhill will be assisting the Company in evaluating transaction options currently being considered as well as identifying new opportunities which could include the acquisition of MabVax by another company, the sale or divestiture of specific assets coupled with a reverse merger, merging with another company, or licensing of selected technologies. MabVax does not have a defined timeline for the exploration of strategic alternatives and is not confirming that the evaluation will result in any strategic alternative being announced or consummated. The Company does not intend to discuss or disclose further developments during this process unless and until its Board of Directors has approved a specific action or otherwise determined that further disclosure is appropriate."
Who is Greenhill & Co.?
Well, let's just look at some of their most recent transactions.
Greenhill & Co., in addition, and quite coincidentally was engaged by Immunomedics (IMMU) when it was trading at $2.50 on October 24th and when it was a hornet nest full of short-sellers. We found Immunomedics whenit was trading at $3.00 - before they did. Just saying.
Of course, past performance of Greenhill engagements is no indication of future performance of current or future engagements. And past performance of Companies added to the Biotech Stock Review which have engaged Greenhill is no indication of future performance of current or future Watch List additions. Just saying.
Here are the longer term charts of both Immunomedics and MabVax prior to engaging GreenHill & Co. (Again no future inferences implied).
Recent Volume Chart.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in MBVX over the next 72 hours.
Additional disclosure: Forward Looking Statements: Press releases selected above contain "forward-looking statements" regarding matters that are not historical facts, including statements relating to the Company's clinical trials and product development pipeline. We have no assurance that all the product development pipeline will be fully developed by the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as "anticipates," "plans," "expects," "intends," "will," "potential," "hope" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon current expectations of the Company and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic filings with the Securities and Exchange Commission, including the factors described in the section entitled "Risk Factors" in its annual report on Form 10-K for the fiscal year ended December 31, 2016, as amended and supplemented from time to time and the Company's Quarter Reports on Form 10-Q and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. The parties do not undertake any obligation to update forward-looking statements contained in this press release. Institutional Analyst Inc (IA), Disclaimer. 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