Heat Biologics, a 5-year-old Chapel Hill company developing cancer treatments, hopes to raise $16.5 million in an initial public offering of stock.
The company reported in an updated regulatory filing that the figure is based on its shares being priced at $11, the midpoint of the range being considered.
Heat Biologics has just six employees and another six part-time workers and consultants. It has no products approved for sale, and has lost nearly $6.7 million since its inception.
Heat Biologics has a proprietary therapy treatment that is designed to reprogram human cells so that a patient's own immune system can be used to fight various forms of cancer.
The company plans to use the bulk of the money raised in the IPO, $8.35 million, to complete phase 2 clinical trials for its lung cancer treatment. It will also use $100,000 to initiate and compete phase 1 trails for a bladder cancer treatment; and $1.5 million to fund several other phase 1 trials of its cancer treatments.
Heat Biologics will use $300,000 to repay a portion of a loan that is due in the next 18 months. The company notes in its filing that if it defaults on the loan it would be forced to suspend operations.
The company is offering 1.65 million shares, or about 31 percent of the company. Underwriters will have the option to purchase an additional 247,500 shares.
Heat Biologics had about $4.9 million in cash at the end of March. The company's losses have been increasing.
The company lost $763,856 in the first quarter, compared to a loss of $441,684 in the first quarter of 2012. The company lost $2.4 million last year, compared to $2.1 million in 2011.
Heat Biologics hasn't scheduled a date for its IPO. The company is proposing to have its shares trade on the Nasdaq stock exchange under the ticker HTBX.
Five Triangle companies have already gone public this year.