Aivita Biomedical Inc., of Irvine, Calif., raised $12.5 million in the first closing of its $25 million series B-2 preferred stock investment round. The first closing was by Matthew Katz, an entrepreneur and investor who has been appointed to Aivita’s board. The financing round also includes other health care-focused venture capital firms. Aivita is developing programs using curative and regenerative medicines.
Axovant Gene Therapies Ltd., of Basel, Switzerland, said it closed an underwritten public offering of approximately 16.6 million common shares, which included full exercise of the option by underwriters to purchase 2.6 million additional shares, at $3.75 apiece. In addition, and in lieu of common shares, Axovant sold to a certain investor prefunded warrants to purchase approximately 3.3 million common shares at $3.74999 per prefunded warrant. Gross proceeds from the offering were approximately $74.7 million. SVB Leerink acted as sole book-running manager, with Chardan as lead manager. On Feb. 25, Axovant shares (NASDAQ:AXGT) lost 21 cents to close at $3.93.
Kahr Medical Ltd., of Jerusalem, said it raised $18 million from a global syndicate led by Flerie Invest AB, Oriella Ltd., Hadasit Bio-Holdings, Pavilion Capital and Mirae Asset Venture Investment. The round is expected to close in early March. Proceeds will be used to advance the company's immuno-oncology candidates, including development of lead asset DSP-107, an anti-CD47 therapy to treat solid tumors, through a phase I/II study and preclinical advancement of additional pipeline projects. Kahr is developing a drug platform based on bifunctional, immunotherapeutic fusion proteins known as dual signaling proteins.
Lipocine Inc., of Salt Lake City, said institutional investors agreed to purchase approximately 10.1 million class A units priced at 59.5 cents apiece in a registered direct offering priced at the market. Each unit consists of one common share and half of a common warrant to purchase one common share at 53 cents per share. Lipocine did not disclose specific use of proceeds, expected to gross approximately $6 million. Roth Capital Partners is sole agent for the offering, expected to close by Feb. 27. Lipocine shares (NASDAQ:LPCN) lost 21 cents on Feb. 25, closing at 56 cents.
Promis Neurosciences Inc., of Toronto, said that approximately 6.3 million common share warrants issued Feb. 10, 2017, and Feb. 21, 2017, in a nonbrokered private placement were exercised at 20 cents apiece, mostly in the month prior to their Feb. 21, 2020, expiry date, for gross proceeds of approximately $1.3 million. The company said funds from the warrant exercise extend its cash runway further into 2020.
Redhill Biopharma Ltd., of Tel Aviv, Israel, said it inked a $115 million royalty-backed term loan agreement with Healthcare Royalty Partners (HCR). Terms called for Redhill to receive $30 million following closing to support its U.S. commercial operations, including the planned U.S. launch of Talicia (rifabutin + amoxicillin + omeprazole) in the first quarter of 2020 and the ongoing promotion of Aemcolo (rifamycin). Redhill is set to receive an additional $50 million to fund the acquisition of rights to the peripherally acting mu-opioid receptor antagonist Movantik (naloxegol) from Astrazeneca plc, of Cambridge, U.K. Two additional tranches totaling $35 million will be available upon satisfaction of certain conditions. HCR will receive royalties in the low-single digits based on Redhill’s worldwide net revenues, subject to a cap, and interest on the outstanding term loan to be computed as the three-month LIBOR rate plus a single-digit interest rate, depending on revenues generated. The term loan matures in six years with no principal amortization payments required in the first three years and can be prepaid at Redhill’s discretion, subject to customary prepayment fees. SVB Leerink acted as exclusive financial advisor and Cravath, Swaine & Moore LLP acted as special transaction counsel to Redhill on the transaction, with Cooley LLP as transaction counsel to HCR.