Aditxt Secures $5 Million Financing to Scale AditxtScore™ Operational Capacity
January 26 2021 - 8:54AM
via NewMediaWire -- Aditx Therapeutics, Inc. (Aditxt)
(the “Company”) (Nasdaq: ADTX), a life sciences company developing
biotechnologies specifically focused on improving the health of the
immune system through immune monitoring and reprogramming, today
announced that it has entered into a securities purchase agreement
in connection with a financing with an institutional investor (the
“Investor”). Upon the closing of the financing, after taking into
account an original issue discount and other transaction fees, the
Company expects to receive approximately $4.5 million of net cash
proceeds, which will be used to launch and scale the Company’s
AditxtScore™ immune monitoring service and fund general corporate
and working capital purposes.
Under the securities purchase agreement, the
Investor has agreed to purchase a $6.0 million senior secured
convertible promissory note (the “Note”). The Note has a
twenty-four month term and is convertible at the option of the
Investor at any time prior to maturity at an initial conversion
price of $4.00 per share, subject to adjustment under certain
circumstances. Repayment of the Note’s principal amount will occur
in nineteen monthly cash or common stock payments beginning in July
2021. The Note may be prepaid by the Company at any time without
penalty at 105% of the then outstanding principal amount due under
the Note.
The Investor will also be issued a three-year
warrant (the “Warrant”) to purchase up to 800,000 shares of the
Company’s common stock at an exercise price of $4.00 per share.
Amro Albanna, Co-Founder and CEO of Aditxt,
commented, “This financing will allow us to scale
AditxtScore™beyond our current planned capacity in order to meet
potential demands of current and prospective channel partners. We
believe the continuing increase in COVID-19 cases and availability
of COVID-19 vaccines will drive a growing need for routine
monitoring of an individual’s immunity status which will be crucial
to moving toward a return to public normalcy.”
“In addition to this debt financing, Aditxt
further strengthened its cash position with the receipt of an
additional $3.3 million realized from the exercise of outstanding
warrants that were issued as part of the Company’s capital raise in
September 2020,” concluded Mr. Albanna.
Dawson James Securities, Inc. acted as the
placement agent for the offering.
The Note and the Warrant are being offered in a
private placement under Section 4(a)(2) of the Securities Act of
1933, as amended (the "Act"), and Regulation D promulgated
thereunder and, along with the shares of common stock underlying
the Note and the Warrant, have not been registered under the Act or
applicable state securities laws. Accordingly, the Note, the
Warrant and the shares of common stock underlying each of the Note
and the Warrant 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 Act
and applicable state securities laws.
This press release does not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any
sale of the securities described herein in any state or
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 jurisdiction.
About Aditx TherapeuticsAditxt is
developing technologies specifically focused on improving the
health of the immune system through immune monitoring and
reprogramming. The immune monitoring technology is designed to
provide a personalized comprehensive profile of the immune system.
The immune reprogramming technology is currently at the
pre-clinical stage and is designed to retrain the immune system to
induce tolerance with an objective of addressing rejection of
transplanted organs, autoimmune diseases, and allergies. For more
information, please visit: www.aditxt.com
Forward-Looking StatementsCertain
statements in this press release constitute “forward-looking
statements” within the meaning of the federal securities laws.
Forward looking statements include statements regarding the
Company’s intentions, beliefs, projections, outlook, analyses or
current expectations concerning, among other things, the Company’s
ongoing and planned product development; the Company’s intellectual
property position; the Company’s ability to develop commercial
functions; expectations regarding product launch and revenue; the
Company’s results of operations, cash needs, spending, financial
condition, liquidity, prospects, growth and strategies; the
industry in which the Company operates; and the trends that may
affect the industry or the Company. Forward-looking statements are
not guarantees of future performance and actual results may differ
materially from those indicated by these forward-looking statements
as a result of various important factors, as well as those risks
more fully discussed in the section entitled “Risk Factors” in the
Company’s prospectus, dated September 1, 2020, that was filed with
the Securities and Exchange Commission under File No. 333-248491,
as well as discussions of potential risks, uncertainties, and other
important factors in the Company’s subsequent filings with the
Securities and Exchange Commission. All such statements speak only
as of the date made, and the Company undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
Contacts: Investor
RelationsJeff RamsonPCG AdvisoryChief Executive
OfficerIR@aditxt.com 646-863-6341
Public RelationsKevin Harrington5W Public
Relationsaditxt@5wpr.com
www.aditxt.com
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