ARCA biopharma Announces Closing of $37 Million Private Placement
June 17 2015 - 9:00AM
Business Wire
Proceeds to Support Advancement of
Bucindolol Phase 2B/3 Clinical Development
Bucindolol potentially the first
genetically-targeted atrial fibrillation prevention
treatment
ARCA biopharma, Inc. (Nasdaq: ABIO), a biopharmaceutical company
developing genetically-targeted therapies for cardiovascular
diseases, today announced the closing of the previously announced
private placement financing with a select group of institutional
investors, including lead investor Venrock, New Enterprise
Associates (NEA), funds managed by Franklin Advisers, Inc., RA
Capital Management, Tekla Life Sciences Investors and other
institutional investors. ARCA received net proceeds of
approximately $34 million from the sale of approximately 42 million
units at a price of $0.8805 per unit. Each unit consists of one
share of ARCA’s common stock and a warrant to purchase 0.40 shares
of common stock with an exercise price of $0.8716. The warrants
have a term of seven years and become exercisable 180-days after
the closing date.
ARCA plans to use the anticipated proceeds from the private
placement for working capital and clinical development of
bucindolol, including GENETIC-AF, the ongoing Phase 2B/3 trial for
the prevention of atrial fibrillation. The Company anticipates that
its current cash and cash equivalents and the net proceeds of this
private placement will be sufficient to fund its operations, at the
projected cost structure, through the end of 2017. However,
changing circumstances may cause the Company to consume capital
significantly faster or slower than currently anticipated.
MTS Securities, LLC, an affiliate of MTS Health Partners, acted
as sole placement agent in the transaction.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction.
The securities sold in the private placement have not been
registered under the Securities Act of 1933, as amended, or state
securities laws and may not be offered or sold in the United States
absent registration with the Securities and Exchange Commission
(SEC) or an applicable exemption from such registration
requirements. ARCA has agreed to file a registration statement with
the SEC covering the resale of the shares of common stock,
including the shares of common stock issuable upon exercise of the
warrants, sold in the private placement.
About ARCA biopharma
ARCA biopharma is dedicated to developing genetically-targeted
therapies for cardiovascular diseases. The Company's lead product
candidate, bucindolol, is an investigational, pharmacologically
unique beta-blocker and mild vasodilator being developed for atrial
fibrillation. ARCA has identified common genetic variations that it
believes predict individual patient response to bucindolol, giving
it the potential to be the first genetically-targeted atrial
fibrillation prevention treatment. ARCA has a collaboration with
Medtronic, Inc. for support of the GENETIC-AF trial. The U.S. Food
and Drug Administration (FDA) has designated as a Fast Track
development program the investigation of bucindolol for the
prevention of atrial fibrillation/atrial flutter in a
genetically-targeted heart failure population (heart failure
patients with reduced left ventricular ejection fraction, HFREF).
For more information please visit www.arcabiopharma.com.
Safe Harbor Statement
This press release contains "forward-looking statements" for
purposes of the safe harbor provided by the Private Securities
Litigation Reform Act of 1995. These statements include, but are
not limited to, statements regarding, sufficiency of the Company’s
capital to support its operations, potential timeline for
GENETIC-AF trial activities, the potential for genetic variations
to predict individual patient response to bucindolol, bucindolol’s
potential to treat atrial fibrillation, future treatment options
for patients with atrial fibrillation, and the potential for
bucindolol to be the first genetically-targeted atrial fibrillation
prevention treatment. Such statements are based on management's
current expectations and involve risks and uncertainties. Actual
results and performance could differ materially from those
projected in the forward-looking statements as a result of many
factors, including, without limitation, the risks and uncertainties
associated with: the Company's financial resources and whether they
will be sufficient to meet the Company's business objectives and
operational requirements; results of earlier clinical trials may
not be confirmed in future trials, the protection and market
exclusivity provided by the Company’s intellectual property; risks
related to the drug discovery and the regulatory approval process;
and, the impact of competitive products and technological changes.
These and other factors are identified and described in more detail
in ARCA’s filings with the SEC, including without limitation the
Company’s annual report on Form 10-K for the year ended December
31, 2014, and subsequent filings. The Company disclaims any intent
or obligation to update these forward-looking statements.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150617005463/en/
ARCA biopharma, Inc.Derek Cole,
720-940-2163derek.cole@arcabiopharma.com
ARCA Biopharma (NASDAQ:ABIO)
Historical Stock Chart
From Mar 2024 to Apr 2024
ARCA Biopharma (NASDAQ:ABIO)
Historical Stock Chart
From Apr 2023 to Apr 2024