Abeona Therapeutics Announces $35 Million Private Placement Financing
November 03 2022 - 7:31AM
Abeona Therapeutics Inc. (Nasdaq: ABEO) announced today that it has
entered into a securities purchase agreement to sell 7,065,946
shares of its common stock, and, in lieu of shares of common stock,
pre-funded warrants exercisable for 543,933 shares of common stock,
and accompanying warrants to purchase 7,609,879 shares of its
common stock to a group of new and existing institutional investors
in a private placement. The offering price for each share of common
stock and accompanying warrant was $4.60, and the offering price
for each pre-funded warrant and accompanying warrant was $4.59,
which equals the offering price per share of the common stock and
accompanying warrant, less the $0.01 per share exercise price of
each pre-funded warrant. Each accompanying warrant will represent
the right to purchase one share of the Company’s common stock at an
exercise price of $4.75 per share of common stock. The pre-funded
warrants and the accompanying warrants will be exercisable
immediately, and will expire five years from the date of issuance.
Gross proceeds of the private placement are expected to be
approximately $35,000,000, before deducting placement agent fees
and other expenses. The private placement is expected to close on
November 7, 2022, subject to the satisfaction of customary closing
conditions.
The private placement included participation from new and
existing institutional investors including Adage Capital Management
LP, Armistice Capital, Deerfield Management Company, L.P., EcoR1
Capital and Nantahala Capital as well as other specialist biotech
investors.
Abeona intends to use the net proceeds from the proposed private
placement for development, working capital and general corporate
purposes. Abeona estimates that the net proceeds from the proposed
private placement plus its existing financial resources are
sufficient to fund operations into the third quarter of 2024.
Cantor Fitzgerald & Co. acted as sole placement agent on the
transaction.
The securities being issued and sold in the private placement,
including the shares of common stock underlying the warrants, have
not been registered under the Securities Act of 1933, as amended
(the “Securities Act”), or any states’ securities laws and may not
be offered or sold in the United States, except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Securities Act. Abeona has
agreed to file a registration statement with the Securities and
Exchange Commission (the “SEC”) registering the resale of the
shares of common stock and the shares of common stock issuable upon
exercise of the warrants issued in this private placement. Any
offering of securities under a resale registration statement will
only be made by means of a prospectus.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
securities of Abeona in any state or other jurisdiction in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state or jurisdiction.
About Abeona Therapeutics
Abeona Therapeutics Inc. is a clinical-stage biopharmaceutical
company developing cell and gene therapies for serious diseases.
Abeona’s lead clinical program is EB-101, an investigational
autologous, engineered cell therapy for recessive dystrophic
epidermolysis bullosa. On November 3, 2022, Abeona reported that
the co-primary, secondary, and exploratory endpoints in its Phase 3
VIITAL™ clinical trial for EB-101 were met with a high degree of
statistical significance. The Company’s development portfolio also
features AAV-based gene therapies for ophthalmic diseases with high
unmet medical need. Abeona’s novel, next-generation AAV capsids are
being evaluated to improve tropism profiles for a variety of
devastating diseases. Abeona’s fully integrated cell and gene
therapy cGMP manufacturing facility produced EB-101 for the pivotal
Phase 3 VIITAL™ study and is capable of clinical and potential
commercial production of EB-101 and AAV-based gene therapies.
Forward-Looking StatementsThis
press release contains certain statements that are forward-looking
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and that involve risks and uncertainties. We have
attempted to identify forward-looking statements by such
terminology as “may,” “will,” “believe,” “anticipate,” “expect,”
“intend,” and similar expressions (as well as other words or
expressions referencing future events, conditions or
circumstances), which constitute and are intended to identify
forward-looking statements. Actual results may differ materially
from those indicated by such forward-looking statements as a result
of various important factors, numerous risks and uncertainties,
including but not limited to, our ability to continue as a going
concern; the timing and outcome of our Biologics License
Application submission to the FDA for EB-101; continued interest in
our rare disease portfolio; our ability to enroll patients in
clinical trials; the outcome of any future meetings with the FDA or
other regulatory agencies; the ability to achieve or obtain
necessary regulatory approvals; the impact of changes in the
financial markets and global economic conditions; risks associated
with data analysis and reporting; and other risks disclosed in the
Company’s most recent Annual Report on Form 10-K and other periodic
reports filed with the Securities and Exchange Commission. The
Company undertakes no obligation to revise the forward-looking
statements or to update them to reflect events or circumstances
occurring after the date of this press release, whether as a result
of new information, future developments or otherwise, except as
required by the federal securities laws.
Investor Relations and Media Contact:
Greg Gin
VP, Investor Relations and Corporate Communications
Abeona Therapeutics
ir@abeonatherapeutics.com
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