Sellas Life Sciences Group Inc. plans to raise $10.7 million via a private placement.
Net proceeds will be used to advance the company's cancer immuno-oncology pipeline and for general corporate purposes. The company's programs include a phase 3 registration trial for the treatment of acute myeloid leukemia and a phase 1/2 basket trial with Merck & Co. Inc.'s Keytruda, aimed at five cancer indications.
The New York-based biopharmaceutical company said it will issue shares of its convertible preferred stock and warrants to buy common shares to a group of institutional investors.
The placement will close in two tranches. The company will receive about $6.1 million at the first closing, expected to occur on or around March 9. The second closing, for $4.6 million, is expected early in the second quarter. The closing of the second tranche is subject to stockholder approval.
Cantor Fitzgerald & Co. acted as sole placement agent for the offering.
