X4 Pharmaceuticals Secures $55 Million Private Placement, Amends Debt Facility
July 1, 2022
X4 Pharmaceuticals said it agreed to sell an aggregate of 51 million shares of common stock (or pre-funded warrants in lieu thereof) and warrants to purchase an aggregate of 51 million shares of common stock, to certain institutional accredited investors in a private investment in public equity financing.
The financing included participation from new investors including co-lead investor New Enterprise Associates, Acorn Bioventures, and Lumira Ventures, as well as existing investors including co-lead investor Bain Capital Life Sciences, OrbiMed, AXA Investment Managers, and Hercules Capital.
The purchase price per share and accompanying warrant is $1.095 (or $1.094 per pre-funded warrant and accompanying warrant). The warrants will have a per share exercise price of $1.095 and may be exercised at any time on or after the closing date and through the fifth anniversary of the closing date. The price per share and accompanying warrant was based in part upon the last reported sale price of the common stock on the Nasdaq Capital Market. If exercised for cash, the warrants would result in additional gross proceeds to X4 of up to approximately $55 million.
The closing of the financing is expected to occur on or about July 6, 2022, subject to customary closing conditions.
In addition to the financing, X4 entered into an amendment to its loan and security agreement with Hercules Capital to extend the interest-only period of its loan facility by up to twelve months (into 2024), subject to achieving certain financial and business milestones. This amendment results in a potential reduction of X4’s cash burn by $20 million over the interest-only period.
X4 expects to use these funds for continued clinical development and commercial readiness of its lead candidate, mavorixafor, and for business development activities, working capital, and general corporate purposes.
Author: Rare Daily Staff
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