Equillium, a clinical-stage biotechnology company, has entered into a common stock purchase agreement for up to USD 15.00 million with Lincoln Park Capital Fund.
Under the terms of the deal, once a registration statement relating to the transaction has been declared effective, the company will have the right at its sole discretion to sell around 5.07 million shares to the possible buyer over the 36-month term.
Shares in Equillium closed down 0.8 per cent to USD 2.60 yesterday, giving the business a market capitalisation of USD 45.81 million.
Jason Keyes, chief financial officer at the firm, said: “We are pleased to enter into this agreement with Lincoln Park Capital, as it represents an important potential source of additional capital available to the Company, which could be used to help fund the continued advancement of our clinical development of itolizumab.
“This commitment provides Equillium with a flexible option to opportunistically strengthen our balance sheet at appropriate times to support our evolving business needs.”
Equillium is an immunobiology company developing novel products to treat severe autoimmune and inflammatory disorders with high unmet medical need.
The group’s lead candidate itolizumab is a clinical-stage, first-in-class monoclonal antibody that selectively targets the CD6-ALCAM pathway, which plays a central role in modulating the activity and trafficking of T cells that drive a number of immune-inflammatory diseases.
Equillium believes this product is advancing the clinical development in severe disorders, including uncontrolled asthma, acute graft-versus-host disease and lupus nephritis.
In the year ended 31st December 2019, the group posted net loss of USD 25.60 million, compared to a loss of USD 13.25 million in the previous 12 months.
Equillium recorded total operating expenses of USD 26.73 million in 2019 (2018: USD 8.62 million).
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 131 capital increases announced by US-based companies in 2020 to date.
Tesla, in the largest of these, received USD 2.34 billion in a public offering of a 1.7 per cent stake.
© Zephus Ltd