ImmuCell closes $9M stock offering to fund product expansion
Portland-based animal health group ImmuCell Corp. (Nasdaq: ICCC) said Friday that it sold $9 million in shares of common stock, which it plans to use towards product expansion.
After underwriting discounts and other estimated expenses incurred in connection with the offering, ImmuCell said it expects its net proceeds to be around $8.3 million.
ImmuCell, led by President and CEO Michael F. Brigham, said it plans to use part of that amount to expand product capacity for its First Defense product line to prevent scours, or diarrhea, in newborn calves.
According to ImmuCell’s website, First Defense is the only USDA-licensed, orally delivered scours preventative product on the market for calves with claims against two leading causes of scours.
ImmuCell said it is also increasingly likely that it will use a portion of the proceeds for expanded facilities to manufacture its Re-Tain treatment for mastitis, the most significant cause of economic loss to the dairy industry.
“Any remaining available net proceeds will be used for reduction of indebtedness or general working capital,” it said in a news release.
As the company finalizes its quarterly and yearly results for the period ended March 31, 2019, it estimates that product sales for the quarter to be about $4.25 million, a 48% jump over $2.88 million a year earlier.
The company also said that it expects cash, cash equivalents and short-term investments to come to around $2.41 million as of March 31, excluding net proceeds from the recent stock offering. That compares with $3.06 million a year earlier.
As of Friday’s stock market close, ImmuCell had a market value of close to $46 million.
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