ImmunityBio, Inc. (NASDAQ: IBRX) announced today an up to $320 million royalty financing and equity investment by Oberland Capital, with $210 million of gross proceeds received at closing on December 29, 2023. This brings the total financing in 2023 to $850 million, with $320 million from institutional investors and $530 million from founder Culver City.
Richard Adcock, CEO and President of ImmunityBio, expressed, "This transaction raises significant capital for the company to support important growth plans, yet with limited equity dilution and with a cap on total payments tied to the initial investment." He further added, "Besides providing a capital source at a key inflection point for ImmunityBio, this investment demonstrates strong confidence by Oberland Capital in our future, and in particular in the potential value of anktiva in bladder cancer, as well as the direction of our clinical pipeline."
Andrew Rubinstein, Managing Partner at Oberland Capital, stated, "We are excited to partner with ImmunityBio on the potential launch of anktiva in the treatment of bladder cancer. This investment aligns with our strategy of investing in near-commercial stage biopharmaceutical companies with highly differentiated products and deep clinical pipelines."
The investment from Oberland Capital takes the form of a $300 million revenue interest purchase agreement (RIPA) that is non-dilutive to current investors, of which $200 million was funded at closing, and $100 million is to be funded contingent upon FDA approval of the company's BLA for anktiva in combination with BCG for nmibc, and subject to other terms and conditions as set forth in the RIPA.
In connection with the RIPA, the company and Nant Capital entered into amendments to extend the maturity dates of certain existing promissory notes with an aggregate principal amount of approximately $505 million from December 31, 2024 to December 31, 2025, and to allow Nant Capital to convert up to an aggregate of $380 million of principal, plus accrued and unpaid interest, into shares of common stock at a price per share equal to a 75% premium to the closing market price on January 3, 2024.
Jefferies LLC acted as the exclusive financial advisor to the company on the transaction.
ImmunityBio is a vertically-integrated, clinical-stage biotechnology company developing next-generation therapies and vaccines that bolster the natural immune system to defeat cancers and infectious diseases.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $47 | $2,202 | $605 | $934 | $240 | $556 |
| Revenue Growth | n/a | 4585.11% | -72.52% | 54.38% | -74.3% | 131.67% |
| Operating Margins | -209338% | -7095% | -36509% | -35362% | -146374% | -65065% |
| Net Margins | -204736% | -7165% | -36670% | -37130% | -173570% | -82378% |
| Net Income (k) | -$96,226 | -$157,777 | -$221,851 | -$346,790 | -$416,567 | -$458,019 |
| Net Interest Expense (k) | $433 | $5,920 | $9,074 | $14,849 | $63,515 | $125,634 |
| Depreciation & Amort. (k) | $9,555 | $14,042 | $12,739 | $14,238 | $18,260 | $19,174 |
| Free Cash Flow (k) | -$76,483 | -$156,396 | -$173,393 | -$307,982 | -$415,671 | -$383,773 |
| Capital Expenditures | $13,102 | $4,287 | $1,669 | $33,563 | $78,162 | $41,560 |
| Current Ratio | 3.26 | 2.71 | 1.64 | 0.91 | 0.28 | 2.38 |
