Full Press Release Details
Therapeutics Announces Closing of $25 Million Registered Direct Offering Priced At-the-Market Under Nasdaq Rules
July 7, 2023 - Abeona Therapeutics Inc. (Nasdaq: ABEO) announced the closing of its previously announced registered direct offering
for total gross proceeds of $25 million, before deducting the placement agents' fees and other offering expenses.
existing institutional investors have shown their confidence in Abeona by participating in this registered direct offering without discounts
or warrant coverage," said Vish Seshadri, Chief Executive Officer of Abeona. "We have been very encouraged by the favorable
feedback and insights from healthcare professionals, patient communities, payors and hospital administrators based on the results of
EB-101 in clinical trials, and we are positioned to launch EB-101 in the U.S. without depending on a partner. The $25 million offering
allows us to now start preparing for the commercialization of EB-101 and aim for a timely launch upon potential BLA approval in the first
half of 2024, while also extending our cash runway well into the fourth quarter of 2024."
will use the net proceeds from the offering primarily to fund preparations for commercialization of its product candidate EB-101, as
well as for working capital and general corporate purposes. Based on EB-101's Rare Pediatric Disease designation, Abeona expects
to qualify to receive a priority review voucher (PRV) upon Biologics License Application (BLA) approval and subject to final determination
by the FDA. The PRV can be used to receive an expedited review process of a subsequent marketing application for a different product
or sold to another company to create additional capital.
Company sold 3,284,407 shares of its common stock (and, in lieu of common stock for certain investors, pre-funded warrants to purchase
2,919,140 shares of its common stock) at an offering price of $4.03 per share (or $4.0299 per pre-funded warrant, which represents the
per share offering price for the common stock less the $0.0001 per share exercise price for each pre-funded warrant). The pre-funded
warrants are immediately exercisable at a nominal exercise price of $0.0001 per share and may be exercised at any time until the pre-funded
warrants are exercised in full.
offering was led by Nantahala Capital Management, LLC and included participation by Adage Capital Partners LP and two other existing
Fitzgerald & Co. acted as the sole lead-placement agent for the offering. A.G.P./Alliance Global Partners acted as the co-placement
agent for the offering.
securities described above were offered pursuant to a shelf registration statement on Form S-3 (File No. 333-256850) that was filed with
the Securities and Exchange Commission (the "SEC") on June 7, 2021 and amended on August 27, 2021 and October 19, 2021, and
was declared effective by the SEC on October 22, 2021. The prospectus supplement and the accompanying prospectus that form a part of
the registration statement have been filed with the SEC and are available on the SEC's website at www.sec.gov. Copies of the prospectus
supplement and the accompanying prospectus may also be obtained by contacting Cantor Fitzgerald & Co., Attention: Equity Capital
Markets, 499 Park Avenue, 4th Floor, New York, NY 10022, or by e-mail at prospectus@cantor.com.
securities described above have not been qualified under any state blue sky laws. This press release does not constitute an offer to
sell or the solicitation of offers to buy any securities of Abeona being offered, and shall not constitute an offer, solicitation or
sale of any security in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or jurisdiction.
Therapeutics Inc. is a clinical-stage biopharmaceutical company developing cell and gene therapies for serious diseases. Abeona's
lead clinical program is EB-101, its investigational autologous, engineered cell therapy currently in development for recessive dystrophic
epidermolysis bullosa. The Company's development portfolio also features AAV-based gene therapies for ophthalmic diseases with
high unmet medical need. Abeona's novel, next-generation AAV capsids are being evaluated to improve tropism profiles for a variety
of devastating diseases. Abeona's fully integrated cell and gene therapy cGMP manufacturing facility produces EB-101 for the pivotal
Phase 3 VIITAL study and is capable of clinical and potential commercial production of AAV-based gene therapies.
press release contains certain statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and that involve risks and uncertainties. We have attempted
to identify forward-looking statements by such terminology as "may," "will," "believe," "anticipate,"
"expect," "intend," and similar expressions (as well as other words or expressions referencing future events,
conditions or circumstances), which constitute and are intended to identify forward-looking statements. Actual results may differ materially
from those indicated by such forward-looking statements as a result of various important factors, numerous risks and uncertainties, including
but not limited to, the timing and outcome of our Biologics License Application submission to the FDA for EB-101; continued interest
in our rare disease portfolio; our ability to enroll patients in clinical trials; the outcome of future meetings with the FDA or other
regulatory agencies, including those relating to preclinical programs; the ability to achieve or obtain necessary regulatory approvals;
the impact of any changes in the financial markets and global economic conditions; risks associated with data analysis and reporting;
and other risks disclosed in the Company's most recent Annual Report on Form 10-K and subsequent periodic reports filed with the
Securities and Exchange Commission. The Company undertakes no obligation to revise the forward-looking statements or to update them to
reflect events or circumstances occurring after the date of this press release, whether as a result of new information, future developments
or otherwise, except as required by the federal securities laws.
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