Bionovo struggles to gain funding
Bionovo, a pharmaceutical company focused on women's health and cancer, said it needs to obtain substantial additional funding to achieve its objectives of internally developing drugs.
The company has already reduced its workforce by over 90%. The remaining management of Bionovo will receive reduced cash compensation until either adequate financing can be obtained or the company is sold.
On March 12, Bionovo entered into a securities purchase agreement with investors to purchase an aggregate of 14,231,696 shares of common stock for approximately $426,951.
Additionally, each investor will receive a warrant exercisable into shares of Bionovo common stock. The warrants shall be exercisable into an aggregate of 11,485,844 shares of common stock at an exercise price of $0.03 per share and expire on March 30. If the warrants are exercised in full for cash, Bionovo will receive an approximate additional $344,575.
If sufficient additional funds are not received in the near term, the company may not be able to execute its business plan and may need to further curtail or cease operations.
Bionovo’s management and board of directors are continuing to explore strategic options for the company and are currently reviewing the status of the ongoing clinical trial for Menerba.