Vical Announces $7.8 Million Equity Investment by Partner, AnGes MG
August 01 2016 - 6:30AM
Vical Incorporated (Nasdaq:VICL) announced an agreement by AnGes,
MG, Vical’s long-time partner and an existing shareholder, to
purchase approximately $7.8 million of Vical’s common stock in a
private placement. The shares are being sold at a price of $4.24
per share, the 90-day volume weighted average price of Vical’s
common stock and a premium compared to the closing price on July
29. With the new investment, AnGes’ equity position in Vical will
increase from 2.4% to approximately 18.6% of Vical’s outstanding
shares. The private placement is expected to close on or about
August 2, 2016, subject to the satisfaction or waiver of customary
closing conditions.
Since 2006, Vical and AnGes have partnered on various product
candidates leveraging Vical’s patented DNA delivery technologies
across multiple disease areas. Most recently, Vical and AnGes
announced in January 2015 a collaboration to develop and
commercialize an equine polyclonal antibody therapy for patients
afflicted with Ebola virus disease. AnGes first became an equity
investor in Vical in 2006.
“We are very pleased to have the strong support of AnGes, who
has been a committed partner and Vical shareholder for more than a
decade,” said Vijay Samant, President and Chief Executive Officer.
“AnGes recognizes the promise of our platform and the potential of
our pipeline. This investment, with its attractive terms, coupled
with our efficient cash management, reinforce our solid financial
position as we work to complete the Phase 1 trial of our novel
antifungal, VL-2397, and initiate a Phase 2 trial of our bivalent
HSV-2 vaccine during the second half of 2016.”
The shares will be subject to a two-year lock up period in which
they may not be sold. AnGes has agreed to refrain from taking
specific actions with respect to Vical’s stock, subject to certain
conditions, including not increasing its ownership position beyond
19.9%. AnGes is entitled to have a representative attend meetings
of Vical’s Board of Directors in a non-voting capacity, and may
under certain conditions be entitled to have a representative
appointed to Vical’s Board of Directors in the future. AnGes has
also agreed to vote its shares in accordance with the
recommendations of Vical’s Board of Directors for so long as it
continues to hold a specified percentage of Vical’s outstanding
common stock. Vical also agreed under certain circumstances in the
future to register the shares for resale by AnGes.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction.
The securities being sold in the private placement have not been
registered under the Securities Act of 1933, as amended, or state
securities laws and may not be offered or sold in the United States
absent registration with the Securities and Exchange Commission
(SEC) or an applicable exemption from such registration
requirements.
About AnGesAnGes is a Japanese
biopharmaceutical company that focuses on the development and
commercialization of gene-based medicines for diseases with high
unmet medical needs. The company's lead program is the gene therapy
with hepatocyte growth factor (HGF) plasmid designed to improve
blood circulation by regenerating blood vessels, for the treatment
of critical limb ischemia. Additional information on AnGes is
available at www.anges-mg.com/en.
About VicalVical develops biopharmaceutical
products for the prevention and treatment of chronic or
life-threatening infectious diseases, based on its patented DNA
delivery technologies and other therapeutic approaches. Additional
information on Vical is available at www.vical.com.
Forward-Looking StatementsThis press release
contains forward-looking statements subject to risks and
uncertainties that could cause actual results to differ materially
from those projected. Forward-looking statements include size,
timing and closing of the private placement, anticipated
developments in independent and collaborative programs, including
the plans, timing of initiation, and completion of clinical trials.
Risks and uncertainties include whether the closing conditions
associated with the private placement will be satisfied, whether
Vical or others will continue development of ASP0113, Vical’s HSV-2
vaccine, VL-2397 or any other independent or collaborative
programs; whether Vical or its collaboration partners will be able
to obtain regulatory allowances or guidance necessary to proceed
with proposed clinical trials or implement anticipated clinical
trial designs; whether on-going or planned clinical trials will be
initiated or completed on the timelines Vical currently expects,
whether any product candidates will be shown to be safe and
efficacious in clinical trials; whether Vical is able to continue
its collaborative arrangements or enter into new ones; whether
Vical will have access to sufficient capital to fund its planned
development activities; whether Vical or its collaborative partners
will seek or gain approval to market any product candidates; and
additional risks set forth in the Company's filings with the
Securities and Exchange Commission. These forward-looking
statements represent the Company's judgment as of the date of this
release. The Company disclaims, however, any intent or obligation
to update these forward-looking statements.
Contact:
Tony Ramos
(858) 646-1127
Website: www.vical.com
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