PaxMedica, Inc. Enters Into Committed Equity Investment Agreement for up to $20 Million With Lincoln Park Capital
November 17 2022 - 8:29PM
via NewMediaWire – PaxMedica, Inc. (Nasdaq: PXMD), a clinical stage
biopharmaceutical company focusing on the development of novel
anti-purinergic drug therapies (“APT”) for the treatment of
disorders with intractable neurologic symptoms, today announced
that the Company has entered into a purchase agreement and
registration rights agreement (together, the “Agreement”) for up to
$20 million with Lincoln Park Capital Fund, LLC ("Lincoln Park").
Under the terms and conditions of the Agreement, including
effectiveness of a related registration statement, the Company has
the right, but not the obligation, to sell up to $20 million of its
shares of common stock to Lincoln Park over a 30-month period,
subject to certain limitations. Any common stock that is sold to
Lincoln Park will occur at a purchase price that is determined by
prevailing market prices at the time of each sale with no upper
limits to the price Lincoln Park may pay to purchase the common
stock. The Agreement does not contain any restrictions on the use
of any of the proceeds and there are no financial covenants,
participation rights, rights of first refusal, or penalties. There
are no warrants, derivatives, financial or business covenants
associated with the Agreement and Lincoln Park has agreed not to
cause or engage in any direct or indirect short selling or hedging
of the Company’s common stock. The Company issued common
shares to Lincoln Park as consideration for Lincoln Park’s
commitment to purchase the Company’s common stock under the
Agreement. The Company intends to use the net proceeds from
the sale of its common stock under the Agreement for working
capital and general corporate purposes to support its growth.
Howard Weisman, Chief Executive Officer of PaxMedica, commented,
“This financing affords us additional flexibility as we move toward
completing manufacturing validation of intravenous suramin in
preparation for NDA submission in late 2023 for the Human African
Trypanosomiasis (brucei rhodesiense). The NDA, when submitted, is
also expected to trigger an application for a Priority Review
Voucher “(PRV”) which the company plans to monetize upon
receipt.”
Further details relating to the Agreement and this transaction
will be contained in the Current Report on Form 8-K the Company
intends to file with the Securities and Exchange Commission (the
“SEC”).
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy any shares of common stock, nor
shall there be any sale of shares of common stock in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or other jurisdiction.
About PaxMedicaPaxMedica is a clinical stage
biopharmaceutical company focusing on the development of
anti-purinergic drug therapies (“APT”) for the treatment of
disorders with intractable neurologic symptoms, ranging from
neurodevelopmental disorders, including Autism Spectrum Disorder
(“ASD”), to Myalgic Encephalomyelitis/Chronic Fatigue Syndrome
(“ME/CFS”), a debilitating physical and cognitive disorder believed
to be viral in origin and now with rising incidence globally due to
the long term effects of SARS-CoV-2 (“COVID-19”). One of
PaxMedica’s primary points of focus is the development and testing
of its lead program, PAX-101, an intravenous formulation of
suramin, in the treatment of ASD and the advancement of the
clinical understanding of using that agent against other disorders
such as ME/CFS and Long COVID-19 Syndrome, a clinical diagnosis in
individuals who have been previously infected with COVID-19.
Forward-Looking StatementsThis press release contains
“forward-looking statements.” Forward-looking statements reflect
our current view about future events. These forward-looking
statements involve known and unknown risks and uncertainties and
are based on the Company’s current expectations and projections
about future events that the Company believes may affect its
financial condition, results of operations, business strategy and
financial needs. Investors can identify these forward-looking
statements by words or phrases such as “may,” “will,” “could,”
“expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,”
“believe,” “is/are likely to,” “propose,” “potential,” “continue”
or similar expressions. The Company undertakes no obligation to
update or revise publicly any forward-looking statements to reflect
subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that such expectations will turn out to be correct, and the Company
cautions investors that actual results may differ materially from
the anticipated results and encourages investors to review other
factors that may affect its future results in the Company’s
registration statement and most recent quarterly reports and other
filings with the U.S. Securities and Exchange Commission.
Contacts:
ir@paxmedica.com
Stephanie PrincePCG Advisorysprince@pcgadvisory.com(646)
863-6341
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