ARCA Biopharma Announces $9.4 Million Registered Direct Offering
June 01 2020 - 8:20AM
ARCA biopharma, Inc. (Nasdaq: ABIO) a late stage biopharmaceutical
company applying a precision medicine approach to developing
genetically targeted therapies for cardiovascular diseases, today
announced that it has entered into a definitive securities purchase
agreement with certain institutional and accredited investors to
purchase, in a registered direct offering, 348,000 shares of ARCA’s
common stock, at a purchase price of $9.00 per share, and
pre-funded warrants to purchase 694,222 shares of common stock at a
purchase price of $8.999 per warrant. The gross proceeds to ARCA,
before deducting placement agent fees and other offering expenses,
are expected to be approximately $9.4 million. Subject to customary
closing conditions, the transaction is expected to close on
Wednesday, June 3, 2020.
JonesTrading Institutional Services LLC is
acting as the exclusive placement agent for the offering.
ARCA anticipates that the net proceeds from this
offering will be used to initiate its clinical trial of AB201 and
for working capital and general corporate purposes.
The shares of common stock are being offered
pursuant to a “shelf” registration statement on Form S-3 (File No.
333-238067), which was declared effective by the Securities and
Exchange Commission (SEC) on May 20, 2020. A prospectus supplement
and the accompanying prospectus relating to the registered direct
offering will be filed with the SEC. Electronic copies of the
prospectus supplement and the accompanying prospectus relating to
the registered direct offering may be obtained, when available,
from JonesTrading Institutional Services LLC by calling (212)
907-5332, or by e-mailing Compliance@jonestrading.com, or at the
SEC’s website at http://www.sec.gov.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, 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.
About ARCA biopharmaARCA
biopharma is dedicated to developing genetically targeted therapies
for cardiovascular diseases through a precision medicine approach
to drug development. ARCA is developing AB201 as a potential
treatment for diseases caused by RNA viruses, initially focusing on
COVID-19. ARCA is also developing Gencaro™ (bucindolol
hydrochloride), an investigational, pharmacologically unique
beta-blocker and mild vasodilator, as a potential treatment for
atrial fibrillation in heart failure patients. ARCA has identified
common genetic variations that it believes predict individual
patient response to Gencaro, giving it the potential to be the
first genetically targeted AF prevention treatment. The U.S. FDA
has granted the Gencaro development program Fast Track designation
and a Special Protocol Assessment (SPA) agreement. For more
information, please visit www.arcabio.com or follow ARCA on
LinkedIn.
Safe Harbor StatementThis 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 the expected gross and net proceeds from the
offering, the planned use of proceeds from the offering, the
expected completion of the offering, potential future development
plans for AB201 and Gencaro, the expected features and
characteristics of AB201 or Gencaro, including the potential for
AB201 to treat COVID-19, the potential for genetic variations to
predict individual patient response to Gencaro, Gencaro’s potential
to treat AF, future vaccines and/or treatment options for patients
with COVID-19, future treatment options for patients with AF, and
the potential for Gencaro to be the first genetically targeted AF
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: uncertainties related to market conditions and
satisfaction of customary closing conditions related to the
offering; ARCA may not be able to raise sufficient capital on
acceptable terms, or at all, to continue development of AB201 or
Gencaro or to otherwise continue operations in the future;
statements related to the intended use of net proceeds from the
registered direct offering; results of earlier clinical trials may
not be confirmed in future trials; the protection and market
exclusivity provided by ARCA’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 Securities and Exchange Commission,
including without limitation ARCA’s annual report on Form 10-K for
the year ended December 31, 2019, and subsequent filings. ARCA
disclaims any intent or obligation to update these forward-looking
statements.
Investor & Media
Contact:Derek Cole720.940.2163derek.cole@arcabio.com
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