Aravive Announces $10.0 Million Investment by Eshelman Ventures, LLC and Appointment of Dr. Eshelman as Executive Chairman of the Aravive Board of Directors
January 03 2022 - 6:15PM
Aravive, Inc. (Nasdaq: ARAV), a late clinical-stage oncology
company developing targeted therapeutics to treat metastatic
disease today announced that the company’s Chairman, Fred Eshelman,
Pharm.D., through Eshelman Ventures, LLC, agreed to purchase a
pre-funded warrant to purchase 4,545,455 shares of the company’s
common stock at a price of $2.20 per share, which was the
consolidated closing bid price of the company’s common stock on The
Nasdaq Global Select Market on December 31, 2021. The investment
strengthens the company’s balance sheet by approximately $10.0
million, enhancing the company’s financial flexibility and
liquidity ahead of multiple anticipated clinical milestones
throughout 2022 for each of the company’s clinical programs. The
investment is expected to close on January 5, 2022.
“I am encouraged by the company’s progress in
2021 to advance our lead product candidate,” stated Dr. Eshelman,
Chairman of Aravive, Inc. “Through this investment I am affirming
my commitment to the future of Aravive and eagerly look forward to
the continued rapid progress of developing batiraxcept as a novel
therapeutic option for patients with metastatic disease.”
As of December 31, 2021, Dr. Eshelman was the
beneficial owner of approximately 3,806,098 shares of the company’s
common stock, or approximately 18.2% of the total outstanding
shares of the company. Although Dr. Eshelman’s investment in the
company is not conditioned on shareholder approval, the Nasdaq
Stock Market where the company’s shares are listed requires the
company to seek shareholder approval to allow the exercise of the
pre-funded warrant if such exercise would result in Dr. Eshelman
beneficially owning in excess of 20% of the voting power of the
company’s common stock.
Pursuant to the terms of the investment
agreement executed among the company, Dr. Eshelman, and Eshelman
Ventures, LLC and consistent with the terms of past investments by
Eshelman Ventures, LLC, the company is required to register the
resale of the shares of common stock issuable upon exercise of the
pre-funded warrant.
Additionally, Dr.
Eshelman was appointed the Executive Chairman of Aravive having
served as the Non-Executive Chairman of the board since April 2020.
In his new role as Executive Chairman, Dr. Eshelman will continue
to work with Chief Executive Officer, Gail Mcintyre, Ph.D., and
senior management of the Company, to help shape and execute the
Company’s strategy and direction, as well as other key business
initiatives, subject in all cases to the direction of the Board of
Directors.
“Dr. Eshelman and I have worked closely together
for over 20 years and in various companies to bring a number of
products to market,” stated Gail McIntyre, Ph.D., DABT, Chief
Executive Officer of Aravive. “I am looking forward to working
closely with Dr. Eshelman to hopefully bring batiraxcept to
market.”
About AraviveAravive, Inc. is a
late clinical-stage oncology company developing targeted
therapeutics to treat metastatic disease. Our lead product
candidate, batiraxcept (formerly AVB-500), is an ultra-high
affinity decoy protein that binds to GAS6, the sole ligand that
activates AXL, thereby inhibiting metastasis and tumor growth, and
restoration of sensitivity to anti-cancer agents. Batiraxcept has
been granted Fast Track Designation by the U.S. FDA and Orphan Drug
Designation by the European Commission in platinum-resistant
recurrent ovarian cancer. Batiraxcept is in an active
registrational Phase 3 trial in platinum resistant ovarian cancer
(NCT04729608), a Phase 1b/2 trial in clear cell renal cell
carcinoma (NCT04300140), and a Phase 1b/2 trial in pancreatic
adenocarcinoma (NCT04983407). A P1B platinum-resistant ovarian
cancer trial demonstrated more than a doubling of progression-free
survival in a patient subgroup that represents the ongoing P3
population. Additional information at www.aravive.com.
Contact:Marek Ciszewski,
J.D.Vice President, Investor Relationsmarek@aravive.com (562)
373-5787
Forward Looking StatementsThis
press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 on
our current expectations and projections about future events. In
some cases, forward-looking statements can be identified by
terminology such as “may,” “should,” “potential,” “continue,”
“expects,” “anticipates,” “intends,” “plans,” “believes,”
“estimates,” and similar expressions. These statements are based
upon current beliefs, expectation, and assumptions and include
statements regarding the timing and completion of the proposed
investment and the continued rapid progress of developing
batiraxcept as a novel therapeutic option for patients with
metastatic disease and the consummation of the offering. These
statements are subject to risks and uncertainties, including market
conditions, whether the proposed investment is completed, the
success of Aravive’s clinical programs, reliance on key personnel,
and other factors described in Aravive’s filings with the SEC. The
information in this release is provided only as of the date of this
release, and Aravive undertakes no obligation to update any
forward-looking statements contained in this release based on new
information, future events, or otherwise, except as required by
law.
Aravive (NASDAQ:ARAV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Aravive (NASDAQ:ARAV)
Historical Stock Chart
From Apr 2023 to Apr 2024