PaxMedica, Inc. Secures $3.2 Million Growth Capital From Lind Partners
February 03 2023 - 08:00AM
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 signed a funding agreement for net proceeds of
$3.2 million with Lind Global Partners II, LP, an investment fund
managed by The Lind Partners, a New York based institutional fund
manager (together “Lind”).
Howard Weisman, Chief Executive Officer of PaxMedica, commented,
“We believe that this funding will give us the flexibility to
progress on the work we are doing for the development of the autism
spectrum disorder (ASD) indication for PAX-101. We appreciate the
Lind Group’s support for our work to find treatments for disorders
with intractable neurologic symptoms such as ASD.”
The new capital is in the form of a $3.68 million convertible
note with an 18-month maturity, 0% annual interest rate and is
convertible into Company’s common shares at a conversion price of
$3.50. Commencing 180 days after funding, the Company is required
to make principal payments in 12 equal monthly installments. At the
discretion of the Company, repayments can be made in cash or
registered common shares. Lind will also receive a four-year
warrant to purchase an aggregate of 800,000 shares of common stock
exercisable at $3.25 per share. The transaction is subject to the
satisfaction of customary closing conditions.
Further details relating to 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 The Lind Partners
The Lind Partners manages institutional funds that are leaders
in providing growth capital to small- and mid-cap companies
publicly traded in the US, Canada, Australia and the UK. Lind’s
funds make direct investments ranging from US$1 to US$30 million,
invest in syndicated equity offerings and selectively buy on
market. Having completed more than 150 direct investments totaling
over US$1.5 Billion in transaction value, Lind’s funds have been
flexible and supportive capital partners to investee companies
since 2011.
About PaxMedica
PaxMedica 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.
For more information, please visit: www.paxmedica.com
Forward-Looking Statements
This 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.comStephanie PrincePCG
Advisorysprince@pcgadvisory.com(646) 863-6341
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