FibroBiologics secured a $5 million funding tranche under a $25 million equity agreement with Yorkville Advisors.
Quiver AI Summary
FibroBiologics, Inc., a clinical-stage biotechnology firm focused on developing therapies for chronic diseases using fibroblasts, has announced the closing of a $5 million tranche as part of a previously established Standby Equity Purchase Agreement (SEPA) with investment fund YA II PN, LTD. This agreement allows FibroBiologics to sell up to $25 million in common stock over two years, with the first two $5 million tranches funded through convertible promissory notes. The final $5 million tranche will be funded after a registration statement is effective and shareholder approval is obtained. The proceeds from this financing are intended for general corporate use. The company emphasizes that the financing's success and its ongoing research and development efforts are subject to various risks and uncertainties.
Potential Positives
- FibroBiologics successfully closed a second $5 million tranche of financing under a Standby Equity Purchase Agreement, providing significant immediate capital.
- The agreement allows FibroBiologics to potentially raise up to $25 million over two years, enhancing its financial flexibility for development projects.
- The company's strong intellectual property position with over 160 patents supports its innovative efforts in cell therapy, attracting investor interest.
- The funding is expected to support general corporate purposes, which may include advancing research and development initiatives in chronic disease therapeutics.
Potential Negatives
- The reliance on a Standby Equity Purchase Agreement (SEPA) for financing may indicate potential liquidity issues or a lack of access to traditional capital markets, raising concerns about the company's financial stability.
- The need for shareholder approval to access further funds under the SEPA suggests uncertainty regarding investor confidence and could lead to volatility in stock prices.
- Forward-looking statements in the release emphasize significant risks and uncertainties, including the inability to satisfy conditions under the SEPA, which might deter potential investors from perceiving the company as a viable investment opportunity.
FAQ
What is the recent financing announcement from FibroBiologics?
FibroBiologics closed the second $5 million tranche of a Standby Equity Purchase Agreement with Yorkville, totaling up to $25 million.
How will FibroBiologics use the funds from the SEPA?
The net proceeds from the financing are expected to be used for general corporate purposes.
What are the terms of the Standby Equity Purchase Agreement?
The SEPA allows FibroBiologics to sell up to $25 million in common stock to Yorkville over two years, subject to certain conditions.
Who acted as the exclusive placement agent for the SEPA?
D. Boral Capital LLC acted as the exclusive placement agent in connection with the Standby Equity Purchase Agreement.
What is the focus of FibroBiologics as a biotechnology company?
FibroBiologics focuses on developing therapeutics and potential cures for chronic diseases using fibroblasts and fibroblast-derived materials.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$FBLG Insider Trading Activity
$FBLG insiders have traded $FBLG stock on the open market 2 times in the past 6 months. Of those trades, 2 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $FBLG stock by insiders over the last 6 months:
- PETE O'HEERON (Chief Executive Officer) purchased 8,500 shares.
- HAMID KHOJA (Chief Scientific Officer) purchased 10,000 shares.
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We have seen 36 institutional investors add shares of $FBLG stock to their portfolio, and 14 decrease their positions in their most recent quarter.
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Full Release
HOUSTON, Dec. 30, 2024 (GLOBE NEWSWIRE) -- FibroBiologics, Inc. (Nasdaq: FBLG) ("FibroBiologics”), a clinical-stage biotechnology company with 160+ patents issued and pending with a focus on the development of therapeutics and potential cures for chronic diseases using fibroblasts and fibroblast-derived materials, announced that it has closed the second $5 million tranche of the previously announced Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, LTD. (“Yorkville”), an investment fund managed by Yorkville Advisors Global, LP. The agreement allows FibroBiologics, subject to customary conditions, to sell up to $25 million in the aggregate of its common stock to Yorkville over the course of two years.
Yorkville agreed to advance to FibroBiologics the first $15 million available under the SEPA in three equal tranches to be evidenced by convertible promissory notes. The first tranche in the amount of $5 million was funded upon entry into the SEPA and the second tranche of $5 million was funded after the filing of a registration statement covering the resale of the shares issuable to Yorkville under the promissory notes. The third tranche of $5 million will fund following the effectiveness of the registration statement and receipt of shareholder approval in satisfaction of Nasdaq rules. FibroBiologics can sell an additional $10 million of its common stock to Yorkville, subject to Yorkville’s consent and other conditions, while the convertible promissory notes remain outstanding.
The net proceeds of the financing are expected to be used for general corporate purposes.
For more information, please visit
FibroBiologics' website
or email FibroBiologics at:
info@fibrobiologics.com
. For more information on the SEPA, including important terms and conditions, please see FibroBiologics' filings with the Securities and Exchange Commission, including its Current Reports on Form 8-K filed with the Securities and Exchange Commission from time to time.
This communication shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the securities discussed herein, in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
D. Boral Capital LLC acted as the exclusive placement agent in connection with the SEPA.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning the funding of the advances under the SEPA, FibroBiologics’ ability to sell additional shares under the SEPA, and FibroBiologics’ ability to complete clinical trials and IND-enabling studies and to develop its other programs and indications. These forward-looking statements are based on FibroBiologics' management's current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside FibroBiologics' management's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including those set forth under the caption "Risk Factors" and elsewhere in FibroBiologics' annual, quarterly and current reports (i.e., Form 10-K, Form 10-Q and Form 8-K) as filed or furnished with the SEC and any subsequent public filings. Copies are available on the SEC's website,
www.sec.gov
. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) risks related to FibroBiologics' liquidity and its ability to maintain capital resources sufficient to conduct its business; (b) expectations regarding the initiation, progress and expected results of our R&D efforts and preclinical studies; (c) the unpredictable relationship between R&D and preclinical results and clinical study results; and (d) the ability of FibroBiologics to satisfy the conditions under the SEPA and related agreements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and FibroBiologics assumes no obligation and, except as required by law, does not intend to update, or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. FibroBiologics gives no assurance that it will achieve its expectations.
About FibroBiologics
Based in Houston, FibroBiologics is a clinical-stage biotechnology company developing a pipeline of treatments and potential cures for chronic diseases using fibroblast cells and fibroblast-derived materials. FibroBiologics holds 160+ US and internationally issued patents/patents pending across various clinical pathways, including disc degeneration, orthopedics, multiple sclerosis, psoriasis, wound healing, reversing organ involution, and cancer. FibroBiologics represents the next generation of medical advancement in cell therapy. For more information, visit
www.FibroBiologics.com
.
General Inquiries:
info@fibrobiologics.com
Investor Relations:
Nic Johnson
Russo Partners
(212) 845-4242
fibrobiologicsIR@russopr.com
Media Contact:
Liz Phillips
Russo Partners
(347) 956-7697
Elizabeth.phillips@russopartnersllc.com
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
