IO Biotech, Inc. Announces $75 Million Private Placement Financing
August 07 2023 - 8:30AM
IO Biotech, Inc. (Nasdaq: IOBT), a clinical biopharmaceutical
company developing novel, immune-modulating cancer vaccines based
on its T-win® technology platform, today announced that it has
entered into a definitive securities purchase agreement for a
private placement that is expected to result in gross proceeds of
approximately $75 million, before deducting offering expenses. The
private placement includes participation from new and existing
investors, including Lundbeckfonden BioCapital; Kurma Growth
Opportunities Fund; Vivo Capital; Armistice Capital; Marshall Wace;
Samsara BioCapital; Novo Holdings; Stonepine Capital Management;
PFM Health Sciences, LP; HBM Healthcare Investments (Cayman)
Limited; Pivotal Life Sciences; Sunstone Life Science Ventures;
Logos Capital; Altamont Pharmaceutical Holdings, LLC; and The Red
Hook Fund LP; among others. Members of the company’s management
team also participated in this transaction.
“The continued strong support that we have
received from our existing investors and the enthusiasm from an
impressive group of new healthcare investors are testaments to the
potential of IO102-IO103, to the strength of the data generated to
date from the Phase 1/2 study in metastatic melanoma and from our
ongoing Phase 2 basket study (IOB-022/KND38),” said Mai-Britt
Zocca, PhD, President and CEO of IO Biotech. “With the proceeds of
this financing, we expect to have sufficient capital to fund our
operations into the fourth quarter of 2025, supporting the
continued development of IO102-IO103 through critical clinical
milestones from our pivotal Phase 3 trial in first-line advanced
melanoma, as well as from our Phase 2 studies.”
Under the securities purchase agreement, the
investors have agreed to purchase 37,065,647 shares of the
company’s common stock and accompanying warrants to purchase up to
an aggregate of 37,065,647 shares of common stock, at a combined
purchase price of $2.025 per share and accompanying warrant. Each
accompanying warrant will represent the right to purchase one share
of the company’s common stock at an exercise price of $2.47 per
share. The warrants will be exercisable for a period of three years
and six months following the date of issuance.
Morgan Stanley and Piper Sandler acted as joint
placement agents for the financing.
The offer and sale of the foregoing securities
are being made in a transaction not involving a public offering and
the securities have not been registered under the Securities Act of
1933, as amended (the “Securities Act”), or applicable state
securities laws. Accordingly, the securities may not be reoffered
or resold in the United States except pursuant to an effective
registration statement or an applicable exemption from the
registration requirements of the Securities Act and such applicable
state securities laws.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy the securities, nor
shall there be any sale of the securities in any state in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of such
state.
About IO102-IO103
IO102-IO103 is an investigational
immune-modulating cancer vaccine designed to target the
immunosuppressive mechanisms mediated by the proteins indoleamine
2,3-dioxygenase (IDO) and PD-L1. The company is currently
conducting a Phase 3 trial (IOB-013/KN-D18; NCT05155254) evaluating
IO102-IO103 in combination with pembrolizumab in first-line
advanced melanoma patients. The company is also conducting a Phase
2 basket trial (IOB-022/KN-D38; NCT05077709), a non-comparative,
open label trial to investigate the safety and efficacy of
IO102-IO103 in combination with pembrolizumab for the first-line
treatment of each of the following advanced cancers: non-small cell
lung cancer (NSCLC) and squamous cell carcinoma of the head and
neck (SCCHN).
About IO Biotech
IO Biotech is a clinical-stage biopharmaceutical
company developing novel, immune-modulating cancer vaccines based
on its T-win® vaccine platform. The T-win platform is a novel
approach to cancer vaccines designed to activate T cells to target
the most important immunosuppressive cells in the tumor
microenvironment. IO Biotech is advancing in clinical studies its
lead cancer vaccine candidate, IO102-IO103, targeting IDO and
PD-L1, and through preclinical development its other pipeline
candidates. IO Biotech is headquartered in Copenhagen, Denmark and
has US headquarters in New York, New York.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements, including
regarding the closing of the private placement, the timing of the
interim analysis of our Phase 3 trial, current or future clinical
trials, their progress, enrollment or results, or the company’s
financial position or cash runway, are based on IO Biotech’s
current assumptions and expectations of future events and trends,
which affect or may affect its business, strategy, operations or
financial performance, and actual results and other events may
differ materially from those expressed or implied in such
statements due to numerous risks and uncertainties. Forward-looking
statements are inherently subject to risks and uncertainties, some
of which cannot be predicted or quantified. Because forward-looking
statements are inherently subject to risks and uncertainties, you
should not rely on these forward-looking statements as predictions
of future events. These forward-looking statements speak only as of
the date hereof and should not be unduly relied upon. Except to the
extent required by law, IO Biotech undertakes no obligation to
update these statements, whether as a result of any new
information, future developments or otherwise.
Company Contact: Maryann Cimino, Director of
Investor RelationsIO Biotech, Inc.617-710-7305mci@iobiotech.com
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