Synthetic Biologics, an Ann Arbor, Mich.-based biotech that develops of synthetic biologics and innovative medicines for serious diseases and unmet medical needs, has entered into definitive stock purchase agreements with accredited investors to raise approximately $10.8 million in a private placement financing.
Pursuant to the stock purchase agreements Synthetic will issue approximately 6.8 million shares of its common stock at a purchase price of $1.60 per share to new and existing investors. Existing investors and an affiliate of R.J. Kirk constitute a majority of the participating investors in this transaction.
"We are very pleased to receive such solid support from both our new and existing investors, who share our vision of the emerging field of synthetic biologics," said Jeffrey Riley, CEO of Synthetic Biologics. "This new capital provides us with a strong cash position going forward. It allows us to advance our lead programs to develop monoclonal antibody therapies for certain infectious diseases and a synthetic DNA-based therapy for pulmonary arterial hypertension through our exclusive channel collaborations with Intrexon. We believe that we are well-positioned to achieve significant milestones related to these cutting edge development programs."
In addition to funding the Synthetic's monoclonal antibody and synthetic DNA programs, the net proceeds are intended to be used for general corporate purposes, including the execution of its business plan as well as the expansion and advancement of its pipeline. Synthetic has also agreed to provide registration rights to the investors with respect to the shares issued to them in this private placement.
Griffin Securities is serving as the company's exclusive financial advisor and placement agent for the offering.