Adial Pharmaceuticals Inc., of Charlottesville, Va., signed a purchase agreement with institutional investors to purchase about $5.2 million of its common stock in a registered direct offering priced at-the-market under Nasdaq rules, and warrants to purchase common stock in a concurrent private placement. The combined purchase price for one share of common stock and a warrant to purchase 0.75 shares of common stock will be $1.85. Maxim Group LLC is acting as the lead placement agent for the offering, and Joseph Gunnar & Co. LLC is serving as the co-placement agent.
Albireo Pharma Inc., of Boston, agreed to terms with Hercules Capital Inc. on a debt facility to provide up to $80 million of new capital. Also, Albireo will receive $15 million under a restructured royalty monetization agreement with Healthcare Royalty Partners for elobixibat in the treatment of chronic constipation in Japan. Elobixibat, approved in Japan for the treatment of patients with chronic constipation, is the first ileal bile acid transporter inhibitor approved anywhere in the world.
Cerecor Inc., of Rockville, Md., signed an underwriting agreement with Oppenheimer & Co. Inc. under which the underwriter agreed to purchase, on a firm commitment basis, 13.2 million shares of common stock of the company at $2.50 per share. The offering is expected to close on or about June 11. Oppenheimer & Co. Inc. is acting as the sole book-running manager. The company also granted to the underwriter a 30-day option to purchase up to about 1.9 million more shares. The gross proceeds to Cerecor are expected to be about $33 million, or about $37.9 million if the overallotment option is exercised in full.
Fate Therapeutics Inc., of San Diego, priced a public offering of about 6.2 million shares at $28.31 per share, for aggregate gross proceeds of about $175 million. Fate granted underwriters a 30-day option to purchase up to an additional 927,234 shares. Net proceeds, prior to the underwriters’ option, are expected to be about $164.2 million and will be used to fund clinical trials and nonclinical studies, the manufacture of clinical product candidates, the expansion of cGMP-compliant manufacturing operations, the conduct of preclinical research and development, and for general corporate purposes. The offering is expected to close on or about June 11. The company also expects to sell in a private placement to Johnson & Johnson Innovation-JJDC Inc., part of New Brunswick, N.J.-based Johnson & Johnson, about 1.8 million shares of common stock for an aggregate purchase price of about $50 million, at a price per share equal to the price in the underwritten public offering. Jefferies, SVB Leerink, Barclays and Guggenheim Securities are acting as joint book-running managers, with Mizuho Securities acting as lead manager and H.C. Wainwright & Co. acting as co-manager. Shares of Fate (NASDAQ:FATE) gained $4.41, or 15.6%, to close June 9 at $32.72.
FSD Pharma Inc., of Toronto, closed its private placement of 1.5 million class B subordinate voting shares priced at CA$6.75 (US$5.04) per share and warrants to purchase 1.5 million shares to certain institutional investors for gross proceeds of about CA$10.125 million. The company also granted the placement agents an option to arrange for purchases of up to an additional CA$10.125 million of securities for a period of 30 days following the initial closing. The net proceeds are expected to be used for working capital and other general corporate purposes.
Fusion Pharmaceuticals Inc., of Hamilton, Ontario, filed to raise up to $100 million in an IPO. The company plans to list on Nasdaq under the ticker FUSN. Morgan Stanley, Jefferies and Cowen are listed as joint bookrunners on the deal. Pricing terms were not disclosed.
Jazz Pharmaceuticals plc, of Dublin, priced $850 million aggregate principal amount of 2% exchangeable senior notes due 2026 in a private offering by Jazz Investments I Ltd., its wholly owned subsidiary, to qualified institutional buyers. The issuer also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $150 million of notes. The sale is expected to close on June 11.
Kezar Life Sciences Inc., of South San Francisco, priced an underwritten public offering of about 7.5 million shares of its common stock, and to certain investors in lieu thereof, prefunded warrants to purchase 909,091 shares, at an exercise price of $0.001 per share. The public offering price of each share of common stock is $5.50 and the public offering price of each prefunded warrant is about $5.49 per underlying share. Kezar has granted the underwriters a 30-day option to purchase up to about 1.2 million more shares. The offering is expected to close on June 11. Jefferies, Cowen and William Blair are acting as joint book-running managers.
Lattice Biologics Ltd., of Belgrade, Mont., obtained approval to issue about 16.7 million shares to settle outstanding debt. About CA$838,000 (US$624,295) in debt held by Guy Cook has been converted to equity at a price of CA$5 cents per share and the debt has been extinguished. The common shares are subject to a four-month hold period.
Nflection Therapeutics Inc., of Wayne, Pa., closed a $20 million series A financing round with investment from Venbio Partners and F-Prime Capital. The company also announced the initiation of the first clinical trial of its lead product, NFX-179 gel. The study will be a safety, tolerability and pharmacokinetic plus pharmacodynamic study of NFX-179 in adult patients with cutaneous neurofibromatosis type-1.
Oncology Venture A/S, of Horsholm, Denmark, said it will issue 751,879 shares at a price per share of SEK1.33 (US14 cents) to Negma Group Ltd. The share issue is carried out pursuant to the convertible note agreement with Negma and Park Partners GB. The firm disclosed earlier that it had called upon the first tranche of convertible notes of SEK10 million in line with the terms from the financing agreement made in late March 2020. Negma has requested to convert SEK1 million of the notes into 751,879 shares of nominal DKK0.05 (US0.007616 cents) each.
Onxeo SA, of Paris, disclosed the completion of a capital increase by private placement of new shares for a total amount of about €7.3 million (US$8.2 million). The round was subscribed to by Invus Public Equities LP and Financière de la Montagne, the company's historical shareholder. The funds raised will accelerate the development of Onxeo's programs and extend its cash runway into the first quarter of 2022.
Polypid Ltd., of Petah Tikva, Israel, filed to raise up to $58 million in an IPO. The firm intends to list on Nasdaq under the ticker PYPD. Barclays and BMO Capital Markets are the joint bookrunners on the deal. Pricing terms were not disclosed.
Replimune Group Inc., of Boston, priced its public offering of about 2.8 million shares of its common stock at $23 per share. In lieu of common stock to certain investors, the firm disclosed the pricing of its public offering of prefunded warrants to purchase about 1.5 million shares of its common stock at a purchase price of about $22.99 each, which equals the public offering price per share of the common stock less the $0.0001 per share exercise price of each prefunded warrant. The gross proceeds from the offering are expected to be about $100 million. Replimune has granted the underwriters a 30-day option to purchase up to 652,173 more shares. The deal is expected to close on June 11. J.P. Morgan Securities LLC, SVB Leerink LLC and BMO Capital Markets Corp. are acting as joint book-running managers for the offering. Wedbush Securities Inc. is serving as lead manager.
Retrophin Inc., of San Diego, priced its public offering of 6.5 million shares of its common stock at $15.50 each, for gross proceeds of about $100.8 million. Retrophin has granted the underwriters a 30-day option to buy as many as 975,000 more shares. Jefferies, Barclays and Bofa Securities are acting as the joint book-running managers. Shares of Retrophin (NASDAQ:RTRX) closed June 9 at $15.09, down $1.46.
Vaxcyte Inc., of Foster City, Calif., filed to raise $210 million by offering 14 million shares in an IPO at a price range of between $14 to $16. The company plans to list on Nasdaq under the symbol PCVX. Bofa Securities, Jefferies and Evercore ISI are serving as joint bookrunners.