Tel Aviv-Based Chemomab Therapeutics Ltd. (NASDAQ: CMMB) started the trading day sharply down, as the clinical stage biotechnology company developing innovative therapeutics for fibro-inflammatory diseases with high unmet need, announced that it has entered into a securities purchase agreement for a private investment in public equity that is expected to result in gross proceeds of approximately $10 million to the Company, before deducting capital market advisor fees and offering expenses.
The PIPE included participation from both new investors, including HBM Healthcare Investments and Sphera Biotech Master Fund LP, and existing investors. Chemomab expects that the net proceeds from the PIPE will extend its cash runway to fund its operations through the beginning of 2026, an extension of approximately one year from current projections, which should fund the Company for approximately one year after the completion of two major milestones expected in early 2025.
Pursuant to the terms of the securities purchase agreement, the Company is selling to certain investors (i) 4,188,867 American Depositary Shares, each representing 20 ordinary shares of the Company, no par value per share, at a purchase price of $1.235 per share which reflects the average share price on the Nasdaq for the last 4 trading days and (ii), in lieu of ADSs, pre-funded warrants (the “Pre-Funded Warrants”) to purchase up to 3,908,300 ADSs at a price per Pre-Funded Warrant of $1.235.
CMMB shares retreated 30 cents, or 21.4%, to $1.12.
