SELLAS Strengthens Year-End Balance Sheet with Addition of Approximately $30.5 Million
December 17 2020 - 7:30AM
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, today announced 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. 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.
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.
About SELLAS Life Sciences Group, Inc.
SELLAS is a late-stage clinical
biopharmaceutical company focused on the development of novel
cancer immunotherapeutics for a broad range of cancer indications.
SELLAS’ lead product candidate, GPS, is licensed from Memorial
Sloan Kettering Cancer Center and targets the WT1 protein, which is
present in an array of tumor types. GPS has potential as a
monotherapy or in combination to address a broad spectrum of
hematologic malignancies and solid tumor indications. SELLAS’
second product candidate, nelipepimut-S, is a HER2-directed cancer
immunotherapy with potential for the treatment of patients with
early stage breast cancer with low to intermediate HER2 expression,
otherwise known as HER2 1+ or 2+, which includes triple negative
breast cancer patients, following standard of care. For more
information on SELLAS, please visit www.sellaslifesciences.com.
Forward-Looking Statements
This press release contains forward-looking statements. All
statements other than statements of historical facts are
“forward-looking statements,” including those relating to future
events. In some cases, forward-looking statements can be identified
by terminology such as “plan,” “expect,” “anticipate,” “may,”
“might,” “will,” “should,” “project,” “believe,” “estimate,”
“predict,” “potential,” “intend,” or “continue” and other words or
terms of similar meaning. These statements include, without
limitation, statements related to the Company’s plans for further
development of and regulatory plans for GPS, including the timing
of clinical results and the potential for GPS as a drug development
candidate. These forward-looking statements are based on current
plans, objectives, estimates, expectations and intentions, and
inherently involve significant risks and uncertainties. Actual
results and the timing of events could differ materially from those
anticipated in such forward-looking statements as a result of these
risks and uncertainties, which include, without limitation, risks
and uncertainties associated with the COVID-19 pandemic and its
impact on the Company’s clinical plans and business strategy, risks
and uncertainties associated with immune-oncology product
development and clinical success thereof, the uncertainty of
regulatory approval, and other risks and uncertainties affecting
SELLAS and its development programs as set forth under the caption
“Risk Factors” in SELLAS’ Annual Report on Form 10-K filed on March
13, 2020 and in its other SEC filings. Other risks and
uncertainties of which SELLAS is not currently aware may also
affect SELLAS’ forward-looking statements and may cause actual
results and the timing of events to differ materially from those
anticipated. The forward-looking statements herein are made only as
of the date hereof. SELLAS undertakes no obligation to update or
supplement any forward-looking statements to reflect actual
results, new information, future events, changes in its
expectations or other circumstances that exist after the date as of
which the forward-looking statements were made.
Investor Contacts
Adam HoldsworthPCG Advisory917-497-9287adamh@pcgadvisory.com
Investor RelationsSELLAS Life Sciences Group,
Inc.917-438-4353info@sellaslife.com
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