ImmuCell seeks private investment to complete new production facility
Portland based ImmuCell Corp. said that it is planning to seek out $3.5 million in private investment for them to help fund $20 million production facility for their new animal health product in which the company is seeking US Food and Drug Administration approval.
The ImmuCell Corp said in a news release that it has agreed to sell nearly 660,000 shares at $5.25 per share to outside investors. ImmuCell stock, which trades on the Nasdaq exchange under he symbol ICCC was trading at $7 per share when the market opened last Tuesday.
"This new capital plus cash flow from operations and possibly some incremental bank debt, fully funds our $20 million capital expenditure budget for the construction of our pharmaceutical facility to produce Nisin, the active ingredient in Mast Out," said ImmuCell President and CEO Michael Brigham in the release "We look forward in completing s offering, which will supplement that offering we completed earlier this year."
Mast Out is a novel treatment for dairy cows with mastisis, an inflammation of the udders which is often caused by a bacterial infection and with this disease, during its treatment, farmers were recommended to throw away the milk of a certain time period following treatment. Product has not yet received any FDA approval and building its production facility for its key ingredient.
ImmuCell also released last Tuesday a preliminary earnings estimated for the third quarter. It has an estimated sale of $2 million for its flagship product First Defense during the quarter, a 20 percent decrease from sales of $2.5 million in a year earlier.
ImmuCell also said a competing product that had been off the market in 2014 and the first half of 2015 returned, and that some customers switched back to that product.
ImmuCell estimated that its net income for the quarter could range anywhere from a slight profit of $33,000 to a loss of $67,000, down from a profit of $351,000 in the third quarter of 2015. The company's official earnings report is expected to be released Nov. 10.