Branford-based biopharma Azitra Inc. gains $20M in partnership deal with Alumni Capital
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Azitra Inc., a Branford-based biopharmaceutical firm, said Thursday it has entered into a share purchase agreement with New York-based institutional investor Alumni Capital LP that it expects will raise $20 million.
Azitra said it anticipates the partnership will provide a flexible source of funding, enabling it to advance its pipeline of genetically engineered bacteria for therapeutic use in dermatology.
The company’s stock trades on the New York Stock Exchange under the symbol AZTR. Friday morning, the stock opened at 31 cents per share, above its 52-week low of 23 cents per share but far below its 52-week high of $12 per share.
Azitra said it anticipates the agreement will allow it to minimize dilution while creating and sustaining shareholder value, enabling it “to be judicious and plan for the timing and amount of any equity sales,” which it said will be critical as it develops its therapy focused on Netherton Syndrome, a rare skin disorder, and EGFRi associated rash, which impacts approximately 150,000 people in the U.S.
Under the terms of the agreement, Azitra has the right to sell and Alumni has the obligation to purchase up to $20 million worth of common stock and warrants to purchase shares of common stock over a 20-month period, at prices based on the market price at the time of each sale.
Azitra, at its sole discretion, controls the timing and amount of all sales of common stock and warrants associated with the agreement, subject to the limitations it contains.
The new agreement follows a securities purchase agreement announced in February in which certain unidentified institutional investors agreed to purchase 3.34 million shares of Azitra’s common stock at an offering price of $0.2785 per share in a registered direct offering. The gross proceeds of that offering was approximately $930,000 before deducting placement agent fees and other expenses. The offering closed Feb. 5.
At the time, Azitra said it intended to use the net proceeds of that offering for working capital and general corporate purposes.
The company also announced a public offering in January that raised about $1.5 million.
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