Pulmatrix Inc (NASDAQ:PULM) has confirmed having entered into a definitive agreement with several institutional investors. This is one of the greatest milestones for the clinical stage biopharmaceutical company, which is well-known for the development of innovative inhaled therapies that address serious pulmonary diseases. The collaboration will necessitate the purchase of shares of common stock at an aggregate of approximately $5.0 million in a registered direct offering.
The arrangement, which will take the selling of each share of approximately 2,000,000 shares of common stock at a cost of $2.50, will be closing after meeting the customary closing conditions. The Securities and Exchange Commission (the “SEC”) has already declared the effectiveness of a “shelf” registration statement, which was relating to the shares of common stock that would be issued alongside the offering. The company will now be filing a prospectus supplement and the accompanying brochure linked to the offering.
The net proceeds will be used for general corporate purposes
It is perhaps an exciting moment for Pulmatrix in having to close this deal, which is being managed by Rodman & Renshaw as the acting exclusive placement agent. The company is expecting to make an estimated net of not less than $4.5 million from the sale of the shares of common stock. All these will be channeled to general corporate purposes and payment of indebtedness.
Let’s explore the scenes behind Pulmatrix
The biopharmaceutical company has a main focus on the use of its patented iSPERSE in addressing the serious pulmonary disease. Besides, the company has a well-outlined pipeline of products, which are more often than not focused on advancing treatments for lung diseases. It has also obtained significant collaborations with other industry players the likes of PUR0200, which is a celebrated generic and has a tangible position in clinical development for unceasing obstructive pulmonary disease (COPD).
Pulmatrix’s iSPERSE seeks to improve therapeutic delivery to the lungs. This is one by maximizing local concentrations, which reduces systemic side effects.