ROCKVILLE, Md., Sept. 12, 2017 /PRNewswire/ -- Synthetic
Biologics, Inc. (NYSE American: SYN), a late-stage clinical company
developing therapeutics that preserve the microbiome to protect and
restore the health of patients, announced today the closing of a
privately placed stock purchase transaction for the sale of
redeemable convertible preferred stock to an affiliate of MSD
Partners, L.P. for aggregate gross proceeds of $12 million.
Synthetic Biologics intends to use proceeds from the Preferred
Stock transaction for general corporate purposes, including the
continued advancement of SYN-004 (ribaxamase), the Company's
Breakthrough Therapy Designation drug candidate designed to prevent
antibiotic-mediated C. difficile infection (CDI), overgrowth
of pathogenic organisms and the emergence of antimicrobial
resistance (AMR) in the gut microbiome.
"We would like to thank MSD Partners, L.P. for their continued
support of Synthetic Biologics and our pipeline of novel
microbiome-focused clinical programs," said Jeff Riley, President and Chief Executive
Officer of Synthetic Biologics. "With proceeds from this
transaction, we intend to further advance SYN-004's (ribaxamase)
late-stage clinical development and advancement towards
commercialization. Our goal remains to create long-term value for
all our stakeholders, including the millions of patients who stand
to benefit from our innovative approach to protecting the gut
microbiome from the adverse effects of antibiotic use."
At closing, Synthetic Biologics issued shares of Preferred
Stock, which are convertible into common shares at an initial
conversion price of $0.54 per share.
Please refer to the Company's Form 8-K which will be filed with the
Securities and Exchange Commission on September 12, 2017 for the complete terms of the
Preferred Stock transaction.
About Synthetic Biologics, Inc.
Synthetic Biologics, Inc. (NYSE American: SYN) is a late-stage
clinical company developing therapeutics designed to preserve the
microbiome to protect and restore the health of patients. The
Company's lead candidates poised for Phase 3 development are: (1)
SYN-004 (ribaxamase) which is designed to protect the gut
microbiome from the effects of certain commonly used intravenous
(IV) beta-lactam antibiotics for the prevention of C.
difficile infection (CDI), overgrowth of pathogenic organisms
and the emergence of antimicrobial resistance (AMR), and (2)
SYN-010 which is intended to reduce the impact of methane producing
organisms in the gut microbiome to treat an underlying cause of
irritable bowel syndrome with constipation (IBS-C). The Company is
also developing preclinical stage monoclonal antibody therapies for
the prevention and treatment of pertussis and novel discovery stage
biotherapeutics for the treatment of phenylketonuria (PKU). For
more information, please visit Synthetic Biologics' website at
www.syntheticbiologics.com.
This press release includes forward-looking statements on
Synthetic Biologics' current expectations and projections about
future events. In some cases, forward-looking statements can be
identified by terminology such as "may," "should," "potential,"
"continue," "expects," "anticipates," "intends," "plans,"
"believes," "estimates," and similar expressions. These statements
are based upon current beliefs, expectations and assumptions and
are subject to a number of risks and uncertainties, many of which
are difficult to predict and include statements regarding the
intended use of proceeds from the financing and further
advancement of SYN-004's (ribaxamase) late-stage clinical
development and advancement towards commercialization. These
forward-looking statements are based on management's expectations
and assumptions as of the date of this press release and are
subject to a number of substantial risks and uncertainties, many of
which are difficult to predict and could cause actual results to
differ materially and adversely from current expectations and
assumptions from those set forth, projected or implied by any
forward-looking statements. Important factors that could cause
actual results to differ materially from current expectations
include, among others, Synthetic Biologics' product candidates
demonstrating safety and effectiveness, as well as results that are
consistent with prior results, Synthetic Biologics' ability to
initiate clinical trials and if initiated, to complete them on time
and achieve desired results and benefits, Synthetic Biologics'
clinical trials continuing enrollment as expected, Synthetic
Biologics' ability to obtain regulatory approvals for
commercialization of product candidates or to comply with ongoing
regulatory requirements, regulatory limitations relating to
Synthetic Biologics' ability to promote or commercialize its
product candidates for specific indications, acceptance of its
product candidates in the marketplace and the successful
development, marketing or sale of Synthetic Biologics' products by
competitors that render Synthetic Biologics' products obsolete or
non-competitive, Synthetic Biologics' ability to maintain its
license agreements, the continued maintenance and growth of
Synthetic Biologics' patent estate, Synthetic Biologics
becoming and remaining profitable, Synthetic
Biologics' ability to establish and maintain collaborations,
Synthetic Biologics' ability to obtain or maintain the capital
or grants necessary to fund its research and development
activities, a loss of any of Synthetic Biologics' key
scientists or management personnel, and other factors described in
Synthetic Biologics' Annual Report on Form 10-K for the year ended
December 31, 2016, and its other
filings with the SEC, including subsequent periodic reports on
Forms 10-Q and 8-K. The information in this release is provided
only as of the date of this release, and Synthetic Biologics
undertakes no obligation to revise or update any forward-looking
statements contained in this release on account of new information,
future events, or otherwise, except as required by law.
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SOURCE Synthetic Biologics, Inc.