ImmunityBio receives up to $320 million in financing

CULVER CITY, Calif. – ImmunoBio, a clinical-stage immunotherapeutics company (Nasdaq: IBRX), announced it has secured up to $320 million in royalty financing and equity investment from Oberland Capital. The transaction includes $210 million received at closing on December 29, 2023, and an additional $110 million subject to future developments, including regulatory approvals.

The financing agreement is designed to support ImmunityBio’s commercialization efforts, specifically for its bladder cancer immunotherapy product Anktiva®, which is pending FDA approval with a PDUFA date set for April 23, 2024. If approved, the product would be used in combination with BCG. Guérin (BCG) is used to treat patients with non-muscle-invasive bladder cancer (NMIBC) who are unresponsive to BCG. )

The transaction with Oberland Capital includes a $300 million Income Interest Purchase Agreement (RIPA), which provides $200 million in initial closing funding and an additional $100 million subject to FDA approval for Anktiva®. Under RIPA, Oberland Capital will receive tiered royalties based on net sales of ImmunityBio’s products, but only in multiples of its investment. In addition, ImmunityBio has entered into an agreement for a private placement of shares valued at $10 million, with Oberland Capital having the option to purchase up to an additional $10 million of common stock in the future.

The deal raises $850 million in funding for ImmunityBio in 2023, including $320 million from institutional investors and $530 million from founders. The funds are intended to accelerate the company’s commercialization plans, expand its urological cancer treatment pipeline, and support ongoing clinical trials and business activities.

ImmunityBio CEO and Chairman Richard Adcock emphasized the limited equity dilution and Oberland Capital’s confidence in the company’s future and the potential value of Anktiva®. Andrew Rubinstein, Managing Partner of Oberland Capital, also expressed enthusiasm for the partnership and the upcoming launch of Anktiva®.

The company also amended the existing promissory note to extend the term and allow conversion of the premium into common stock. Jefferies LLC served as exclusive financial advisor for the transaction.

This news is based on a press release from ImmunityBio, Inc.

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