Exicure Announces $5 Million Raise in Private Placement Transaction Priced at Market Premium
May 10 2022 - 7:21PM
Business Wire
- Proceeds expected to support Exicure’s continued advancement of
preclinical candidates including its SCN9A product candidate, a
non-opioid pain analgesic
- The private placement is being led by a subsidiary of CBI Co.,
Ltd. (“CBI”), a member of a leading investment group in South Korea
focusing on science-based companies in South Korea and the United
States
Exicure, Inc.® (NASDAQ:XCUR), an early-stage biotechnology
company focused on the development of next generation nucleic acid
therapies targeting RNA to address both genetic and non-genetic
neurological disorders and hair loss disorders, today announced
that it has agreed to sell an aggregate of 26,021,111 shares of its
common stock at a purchase price of $0.1937 per share to certain
accredited investors in a private placement in public equity
(“PIPE”) financing. The purchase price of $0.1937 per share of
common stock represents an approximately 45% premium to the 10-day
volume weighted-average share price from May 9, 2022. Exicure
anticipates that the gross proceeds from the PIPE will be
approximately $5 million, before deducting transaction-related
expenses payable by the Company. The Company intends to use the net
proceeds from this offering to support the development of the
advancement of its preclinical program, including the development
of its SCN9A product candidate, as well as other working capital
and general corporate purposes.
The financing is being led by new investor CBI USA, Inc., a
subsidiary of CBI, and includes participation from existing
investor, Abingworth LLP. The closing of the private placement is
expected to occur on or about May 19, 2022, subject to the
satisfaction of customary closing conditions.
In connection with the PIPE, CBI USA received the right to
nominate a member to Exicure’s board of directors, effective as of
the closing date. CBI USA will also have the right to designate one
individual to attend all meetings of the Board in a nonvoting
observer capacity.
Leonard Lee, CEO of Growth & Value Development Inc, a
leading shareholder of CBI said, “We are impressed with the
management, scientists and spherical nucleic acid (SNATM)
technology at Exicure and believe there is untapped value at the
company. We are excited about Exicure’s current partnered programs
and believe there is additional upside the company can achieve with
their non-partnered programs such as their pain program.”
“We are thrilled to have an investor such as CBI support the
promising work being achieved at Exicure,” said Matthias Schroff,
Ph.D., Chief Executive Officer, Exicure Inc. “CBI’s support gives
us additional cash runway which will allow our team to continue to
focus on the development of novel medicines using nucleic acid
therapeutics for difficult to treat conditions.”
The common stock issued in this private placement are being made
in a transaction not involving a public offering and the shares
have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”), and may not be offered or sold in
the United States except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements of the Securities Act. Exicure has agreed to file a
registration statement with the SEC to register the resale of
Company common stock to be issued in the private placement. This
press release shall not constitute an offer to sell or a
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such state or other jurisdiction.
About Exicure, Inc.
Exicure, Inc. is an early-stage biotechnology company developing
nucleic acid therapies targeting ribonucleic acid against validated
targets to neurological disorders and hair loss. The team includes
a diverse scientific group with expertise in nucleic acid
chemistry, drug development and neuroscience. Headquartered in
Chicago, Illinois, the Company conducts its discovery and
development efforts in-house with a dedicated 30,000 square foot
facility, including rapid and automated high throughput nucleic
acid synthesis and screening. For further information, see
www.exicuretx.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements in this press release other than statements of
historical fact may be deemed forward looking including, but not
limited to, statements regarding: the Company’s business strategy
including development of its preclinical pipeline and SCNA9 product
candidate; the timing, use of proceeds and closing of the PIPE; the
anticipated filing of a registration statement to cover the resale
of the Company’s common stock to be issued in the private
placement; the proposed benefits of the Company’s partnered
programs; and the anticipated extension of cash runway due to the
PIPE. Words such as “plans,” “expects,” “will,” “anticipates,”
“continue,” “advance,” “develop” “believes,” “target,” “may,”
“intend,” “could,” and other words and terms of similar meaning and
expression are intended to identify forward-looking statements,
although not all forward-looking statements contain such terms.
Forward-looking statements are based on management’s current
beliefs and assumptions that are subject to risks and uncertainties
and are not guarantees of future performance. Actual results could
differ materially from those contained in any forward-looking
statement as a result of various factors, including, without
limitation: market and other conditions; the Company’s ability to
adequately finance its business and seek alternative sources of
financing the risks that the ongoing COVID-19 pandemic may disrupt
the Company’s business and/or the global healthcare system
(including its supply chain) more severely than it has to date or
more severely than anticipated; unexpected costs, charges or
expenses that reduce the Company’s capital resources; the unproven
approach of the Company’s SNA platform; the Company’s preclinical
programs do not advance into clinical or result in approved
products on a timely or cost effective basis or at all; the results
of early clinical trials are not always being predictive of future
results; the cost, timing and results of clinical trials; that many
drug candidates do not become approved drugs on a timely or cost
effective basis or at all; the ability to enroll patients in
clinical trials; possible safety and efficacy concerns; regulatory
developments; the ability of the Company to obtain or maintain its
existing or future collaborations, licenses or contractual
relationships and/or collaborate successfully with strategic
partners; regulatory developments; exposure to litigation,
including patent litigation, and/or regulatory actions; the ability
of the Company to protect its intellectual property rights; and the
impact of the completion of the Company’s previously reported
internal investigation on the Company’s business and diversion of
management time and attention on related issues, including any
related investigations or proceedings, shareholder lawsuits,
reputational harm, or the possibility that executives or other
employees may resign. Given these risks and uncertainties, you are
cautioned not to place undue reliance on such forward-looking
statements. For a discussion of other risks and uncertainties, and
other important factors, any of which could cause the Company’s
actual results to differ from those contained in the
forward-looking statements, see the section titled “Risk Factors”
in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2021 filed with the Securities and Exchange Commission
on March 25, 2022, as updated by the Company’s subsequent filings
with the Securities and Exchange Commission. All information in
this press release is as of the date of the release, and the
Company undertakes no duty to update this information or to
publicly announce the results of any revisions to any of such
statements to reflect future events or developments, except as
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220510006499/en/
Karen Sharma MacDougall 781-235-3060 ksharma@macdougall.bio
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