CEL-SCI (CVM) to Raise $5 Million in Registered Direct Offering

June 24, 2009 9:25 AM EDT

CEL-SCI Corporation (NYSE AMEX: CVM) has entered into a definitive agreement with one institutional investor to sell 12.5 million units, with each unit consisting of one of the Company's common shares and 0.67 warrants to purchase one share of common stock, for gross proceeds of approximately $5.0 million, before deducting placement agent fees and estimated offering expenses, in a "registered direct" offering.

The investor has agreed to purchase the units at a purchase price of $0.40 per unit. The warrants, which represent the right to acquire an aggregate of up to 8.375 million common shares, will be exercisable at any time on or after 181 days from the Closing Date and prior to the 5-year anniversary at an exercise price of $0.50 per share, which was above the closing price of the Company's common shares on the NYSE AMEX Market on June 23, 2009. Chardan Capital Markets, LLC acted as placement agent for the offering.

The transaction is expected to close on or about June 29, 2009, subject to satisfaction of customary closing conditions.

CEL-SCI Corporation is developing products that empower immune defenses. Its lead product is Multikine(R) which is being readied for a global Phase III trial in advancer primary head and neck cancer. [SM]

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