CEL-SCI CORPORATION TO RAISE $10.5 MILLION IN REGISTERED DIRECT OFFERING
Vienna, VA, December 4, 2012 -- CEL-SCI Corporation (NYSE MKT: CVM) , a late-stage oncology company, has entered into a definitive agreement to sell 35 million shares of its common stock at a price per share of $0.30 in a registered direct offering to institutional investors, representing gross proceeds of approximately $10.5 million.
The investors will also receive warrants to purchase up to 26.25 million shares of CEL-SCI Corporation's common stock. The warrants have an exercise price of $0.40 per share, are not exercisable for six months from the close of the transaction and have a term of exercise of 4 years from the date of issuance. The closing of the offering is expected to take place on or before Friday, December 7, 2012, subject to the satisfaction of customary closing conditions. CEL-SCI Corporation plans to use the net proceeds for CEL-SCI's general and administrative expenses and for CEL-SCI's Phase III clinical trial involving its investigational product Multikine (Leukocyte Interleukin, Injection)*.
The shares and warrants are being offered by CEL-SCI Corporation pursuant to an effective shelf registration statement declared effective by the Securities and Exchange Commission on October 5, 2012.
Chardan Capital Markets, LLC acted as the exclusive placement agent for the transaction.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities may only be offered by means of a prospectus. Copies of the final prospectus supplement and accompanying base prospectus can be obtained from the SEC's website at http://www.sec.gov.
About CEL-SCI Corporation
CEL-SCI is dedicated to research and development directed at improving the treatment of cancer and other diseases by utilizing the immune system, the body's natural defense system. Its lead investigational therapy is Multikine (Leukocyte Interleukin, Injection), currently being studied in a pivotal global Phase III clinical trial. CEL-SCI is also investigating an immunotherapy (LEAPS-H1N1-DC) as a possible treatment for H1N1 hospitalized patients and as a vaccine (CEL-2000) for Rheumatoid Arthritis (currently in preclinical testing) using its LEAPS technology platform. The investigational immunotherapy LEAPS-H1N1-DC treatment involves non-changing regions of H1N1 Pandemic Flu, Avian Flu (H5N1), and the Spanish Flu, as CEL-SCI scientists are very concerned about the possible emergence of a new more virulent hybrid virus through the combination of H1N1 and Avian Flu, or maybe Spanish Flu. The Company has operations in Vienna, Virginia, and in/near Baltimore, Maryland.
* Multikine is the trademark that CEL-SCI has registered for this investigational therapy, and this proprietary name is subject to FDA review in connection with our future anticipated regulatory submission for approval.
When used in this report, the words "intends," "believes," "anticipated", "plans" and "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those projected. Factors that could cause or contribute to such differences include, an inability to duplicate the clinical results demonstrated in clinical studies, timely development of any potential products that can be shown to be safe and effective, receiving necessary regulatory approvals, difficulties in manufacturing any of the Company's potential products, inability to raise the necessary capital and the risk factors set forth from time to time in CEL-SCI Corporation's SEC filings, including but not limited to its report on Form 10- K for the year ended September 30, 2011. The Company undertakes no obligation to publicly release the result of any revision to these forward-looking statements which may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.