Shares of PDS Biotechnology Corp (NASDAQ:PDSB) are trading sharply higher Tuesday afternoon, extending Monday’s gains as investors continue to react to the closing of a multi-tranche financing agreement.
- PDS Biotechnology shares are powering higher. Why is PDSB stock up today?
Dr. Soon-Shiong’s Investment and Board Seats Boost PDSB Stock
The buying momentum follows the company’s Monday announcement that it completed the initial closing of a Private Investment in PIPE financing of up to $22.3 million, securing $11.3 million in gross proceeds in its first tranche. The capital injection was led by Nant Capital, the investment arm of NantWorks founder Dr. Patrick Soon-Shiong.
As part of the strategic transaction, Dr. Soon-Shiong and James Banaag joined PDS Biotech’s board of directors, while NantWorks received a one-year exclusive right to negotiate a licensing deal for PDS Biotech’s HPV-targeted immunotherapy candidate, PDS0101.
Milestone Tranche Targets PDS0301 Phase 3 Registration in Colorectal Cancer
The PIPE funds are designated for debt reduction, working capital and accelerating late-stage development of PDS0301, an IL-12 fused antibody-drug conjugate. An additional $11 million contingent milestone tranche, comprising $10 million from Nant Capital and $1 million from AB Group Ltd., will be unlocked upon submission to the U.S. FDA of a registrational Phase 3 trial protocol for PDS0301 in microsatellite stable metastatic colorectal cancer.
The clinical push builds on interim Phase 2 trial results where PDS0301 demonstrated an 80% 24-month overall survival rate in patients with advanced colorectal malignancies.
PDSB Shares Skyrocket Tuesday
PDSB Price Action: PDS Biotechnology shares were up 50.11% at approximately 60 cents at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock