Corbus Pharmaceuticals Holdings, Inc. (NASDAQ: CRBP) (“Corbus” or
the “Company”), a clinical-stage drug development company
pioneering transformative medicines that target the endocannabinoid
system, today announced it has received an aggregate of $71 million
in gross proceeds from its at-the-market (“ATM") offering coupled
with the execution of a $50 million debt financing facility with K2
HealthVentures (“K2HV”), a healthcare-focused specialty finance
company.
Pursuant to the previously disclosed $75 million
ATM facility, Corbus has sold 9,167,080 shares at a weighted
average price of $7.70 per share.
Jefferies, LLC is serving as sales agent for the
ATM offering.
On July 28, 2020, Corbus entered a debt
financing facility with K2HV pursuant to which K2HV agreed to
provide up to $50 million to Corbus. Corbus received the first $20
million tranche upon signing the debt financing agreement and has
the option to draw $20 million from the second tranche and $10
million from the third tranche, in each case upon achievement of
certain regulatory and developmental milestones. K2HV is an
alternative investment firm that partners with innovative life
sciences and healthcare companies whose success will positively
impact and improve outcomes for patients.
“Our partnership with K2 HealthVentures combined
with the proceeds from our ATM transaction strengthens Corbus’
balance sheet, providing us with a meaningful cash runway and
increasing our ability to have strategic flexibility post data,”
commented Yuval Cohen, Ph.D., Chief Executive Officer of
Corbus.
Morgan Stanley & Co. LLC acted as sole
placement agent for the debt financing.
The Company expects its cash and cash
equivalents on hand of approximately $101 million at July 28, 2020
to fund operations into the third quarter of 2021.
The shares of common stock described above were
sold by the Company pursuant to a shelf registration statement on
Form S-3 (File No. 333-237588), filed with the Securities and
Exchange Commission on April 7, 2020, which included a prospectus
relating to the ATM . Copies of the prospectus may be obtained from
Jefferies LLC, Attention: Equity Syndicate Prospectus Department,
520 Madison Avenue, 2nd Floor, New York, New York 10022, by
telephone at (877) 821-7388, or by email
at Prospectus_Department@Jefferies.com. Electronic copies
of the prospectus are also available on the SEC's website at
http://www.sec.gov.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy any shares of common
stock, nor shall there be any sale of such shares in any state or
other jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such state or other jurisdiction.
About Corbus
Corbus Pharmaceuticals Holdings, Inc. is a Phase
3 clinical-stage pharmaceutical company focused on the development
and commercialization of novel therapeutics to treat inflammatory
and fibrotic diseases by leveraging its pipeline of rationally
designed, endocannabinoid system-targeting drug candidates. The
Company’s lead product candidate, lenabasum, is a novel, oral,
selective cannabinoid receptor type 2 (CB2) agonist rationally
designed to resolve chronic inflammation and fibrotic processes.
Lenabasum is currently being evaluated in systemic sclerosis,
cystic fibrosis, dermatomyositis and systemic lupus
erythematosus.
Corbus is also developing a pipeline of drug
candidates targeting the endocannabinoid system. The pipeline
includes CRB-4001, a 2nd generation, selective cannabinoid receptor
type 1 (CB1) inverse agonist designed to be peripherally
restricted. Potential indications for CRB-4001 include nonalcoholic
steatohepatitis (NASH), among others. Corbus expects data from its
Phase 1 safety study in 2020.
Lenabasum is not approved for the treatment of
systemic sclerosis, dermatomyositis, cystic fibrosis or systemic
lupus erythematosus. CRB-4001 is not approved for the treatment of
NASH/NAFLD. For more information on Corbus’ clinical programs,
please visit here.
Please visit www.CorbusPharma.com and
connect with the Company on Twitter, LinkedIn,
and Facebook.
About K2 HealthVentures
K2 HealthVentures is an alternative investment
firm focused on providing flexible, long-term financing solutions
to innovative private and public companies in the life sciences and
healthcare industries. The investment team comprises collaborative,
experienced professionals with diverse backgrounds in finance and
operations, as well as deep domain knowledge across various
healthcare sectors. A uniquely flexible, permanent capital
structure enables the firm to provide creative, adaptive financing
solutions and meet the evolving capital needs of its portfolio
companies as they grow. K2HV is driven by dual goals of Profit and
Purpose – aiming to fuel the growth of innovative companies that
will ultimately improve the lives of patients and giving a
percentage of investment profits back to underserved areas in
healthcare. www.k2hv.com.
Forward-Looking Statements
This press release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934 and Private Securities Litigation Reform Act, as
amended, including those relating to the Company's product
development, clinical and regulatory timelines, market opportunity,
competitive position, possible or assumed future results of
operations, business strategies, potential growth opportunities and
other statement that are predictive in nature. These
forward-looking statements are based on current expectations,
estimates, forecasts and projections about the industry and markets
in which we operate and management's current beliefs and
assumptions.
These statements may be identified by the use of
forward-looking expressions, including, but not limited to,
"expect," "anticipate," "intend," "plan," "believe," "estimate,"
"potential,” "predict," "project," "should," "would" and similar
expressions and the negatives of those terms. These statements
relate to future events or our financial performance and involve
known and unknown risks, uncertainties, and other factors,
including the potential impact of the recent COVID-19 pandemic and
the potential impact of sustained social distancing efforts, on our
operations, clinical development plans and timelines, which may
cause actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include those set forth in the Company's filings with the
Securities and Exchange Commission. Prospective investors are
cautioned not to place undue reliance on such forward-looking
statements, which speak only as of the date of this press release.
The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Corbus Pharmaceuticals Contacts:
Ted Jenkins, Senior Director, Investor Relations and Corporate
Communications Phone: +1 (617) 415-7745
Email: ir@corbuspharma.com
Lindsey Smith, Director, Investor Relations and Corporate
Communications Phone: +1 (617) 415-7749
Email: mediainfo@corbuspharma.com
Christina Tartaglia Stern Investor Relations Phone: +1 (212)
362-1200 Email: christina.tartaglia@sternir.com
Corbus Pharmaceuticals (NASDAQ:CRBP)
Historical Stock Chart
From May 2024 to Jun 2024
Corbus Pharmaceuticals (NASDAQ:CRBP)
Historical Stock Chart
From Jun 2023 to Jun 2024