On December 19, 2019 Selecta Biosciences, Inc. (NASDAQ: SELB), a clinical-stage biotechnology company focused on unlocking the full potential of biologic therapies based on its immune tolerance platform technology, ImmTOR, reported that it has entered into definitive agreements to sell securities in a private placement with a group of institutional investors and certain members of the Company’s Board of Directors (Press release, Selecta Biosciences, DEC 19, 2019, View Source [SID1234552494]). The lead institutional investors in the private placement were Vivo Capital LLC, Mangrove Partners, EcoR1 Capital LLC, BVF Partners L.P., and Boxer Capital LLC. The transaction is expected to result in gross proceeds to the company of approximately $70 million, before deducting placement agent fees and other offering expenses.
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
The Company plans to use the net proceeds from the financing primarily to fund the ongoing head-to-head Phase 2 COMPARE clinical trial of its lead product candidate, SEL-212, for the treatment of chronic refractory gout, its gene therapy programs, and for general corporate purposes.
Pursuant to the terms of the securities purchase agreement, the Company will issue 45,977,011 units at a price of approximately $1.5225 per unit. Each unit consists of approximately one share of common stock and a warrant to purchase 0.5 of a share of common stock at an exercise price of $1.46. Certain institutional investors have elected to receive pre-funded warrants to purchase common stock in lieu of a portion of their common stock. The closing of the offering is subject to certain conditions and is expected to occur on Monday, December 23, 2019.
Cantor Fitzgerald & Co. served as placement agent for the offering.
The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws, and will be sold in a private placement pursuant to Regulation D of the Securities Act. The securities being issued in the private placement may not be offered or sold in the United States absent registration or pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. The Company has agreed to file a registration statement covering the resale of the securities acquired by the investors in the private placement.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer or sale would be unlawful prior to the registration or qualification under the securities laws of such state. Any offering of the securities under the resale registration statement will only be by means of a prospectus.