Full Press Release Details
Armata Pharmaceuticals Announces Closing
of Second Tranche of $25 Million
Securities Purchase Agreement with Innoviva,
Funds to be used primarily to advance its lead Pseudomonas aeruginosa candidate, AP-PA02
MARINA DEL REY, California, March 30, 2020
- Armata Pharmaceuticals, Inc. (NYSE American: ARMP) ("Armata" or the "Company"), a biotechnology
company focused on precisely targeted bacteriophage therapeutics for antibiotic-resistant infections, today announced that, following
a vote in favor of the transaction by more than 99% of the Armata shareholders that voted, Armata has completed the closing of
the second tranche under the Company's $25 million Securities Purchase Agreement with Innoviva, Inc. (NASDAQ: INVA) ("Innoviva"),
a company with a portfolio of royalties that include respiratory assets partnered with Glaxo Group Limited. In connection with
the second closing, Armata issued 7,717,661 common shares, at a price of $2.87 per share, and warrants to purchase 7,717,661 common
shares, at an exercise price of $2.87 per share, in exchange for gross proceeds of approximately $22.2 million.
"The completion of our $25 million
financing with Innoviva provides our company with significant resources that will allow us to efficiently advance our pipeline
of phage-based therapeutics to treat multi-drug resistant bacterial infections," stated Todd R. Patrick, Chief Executive
Officer of Armata. "This is an important year for Armata as we aim to advance two programs into clinical trials, most notably
our lead program, AP-PA02, which we are developing to treat lower airway infections caused by Pseudomonas aeruginosa. This
pathogen has demonstrated a high level of intrinsic resistance to most antibiotics and has been particularly problematic for cystic
fibrosis patients, a challenge that is reflected in our recent announcement that we have been selected for a therapeutics development
award of up to $5 million from the Cystic Fibrosis Foundation. We are very pleased to have the support of Innoviva on these important
The closing of the first tranche of the
Innoviva Securities Purchase Agreement, which occurred on February 12, 2020, raised gross proceeds of approximately $2.8 million
through the issuance of 993,139 common shares, at a price of $2.87 per share, and warrants to purchase an additional 993,139 common
shares, at an exercise price of $2.87 per share. Concurrent with the closing of the first tranche, Innoviva directors Odysseas
Kostas, M.D. and Sarah Schlesinger, M.D joined Armata's Board of Directors.
Armata currently has approximately 18.6
million shares of common stock and warrants exercisable for approximately 10.6 million shares of common stock outstanding.
The Company expects the proceeds from the
offering to provide sufficient cash resources to achieve several important milestones in 2020 and 2021.
This release does not constitute an offer
to sell or the solicitation of an offer to buy any security. The shares offered have not been registered under the Securities Act
of 1933, as amended, or applicable state securities laws and may not be offered or sold in the United States or any state thereof
absent registration under the securities act and applicable state securities laws or an applicable exemption from registration
About Armata Pharmaceuticals, Inc.
Armata is a clinical-stage biotechnology
company focused on the development of precisely targeted bacteriophage therapeutics for the treatment of antibiotic-resistant infections
using its proprietary bacteriophage-based technology. Armata is developing and advancing a broad pipeline of natural and synthetic
phage candidates, including clinical candidates for Pseudomonas aeruginosa, Staphylococcus aureus, and other pathogens.
In addition, in collaboration with Merck, known as MSD outside of the United States and Canada, Armata is developing proprietary
synthetic phage candidates to target an undisclosed infectious disease agent. Armata is committed to advancing phage with drug
development expertise that spans bench to clinic including in-house phage specific GMP manufacturing.
Forward Looking Statements
This communication contains "forward-looking"
statements, including, without limitation, statements related to the anticipated benefits of the offering and related transactions,
Armata's ability to meet expected milestones, expand its pipeline, pursue additional potential partnerships, statements related
to clinical trials, including the anticipated initiation of a clinical trial of AP-PA02,
and future milestones, including obtain topline data from the clinical trial of AP-PA02, obtain third party, non-dilutive funding
to advance the company's Staphylococcus aureus phage candidate, AP-SA02, into clinical trials, and file an IND to initiate
clinical studies of AP-SA02. Any statements contained in this communication that are not statements of historical fact may
be deemed to be forward-looking statements. These forward-looking statements are based upon Armata's current expectations. Forward-looking
statements involve risks and uncertainties. Armata's actual results and the timing of events could differ materially from those
anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation,
risks related to Armata's ability to advance its preclinical and clinical programs and the uncertain and time-consuming regulatory
approval process; Armata's ability to develop products based on bacteriophages and synthetic phages to kill bacterial pathogens;
Armata's expected market opportunity for its products; the potential impact of the COVID-19 (coronavirus) pandemic and the
impact it could have on our employees, facilities, development activities and timelines; and Armata's ability to sufficiently fund
its operations as expected, including obtaining additional funding as needed. Additional risks and uncertainties relating to Armata
and its business can be found under the caption "Risk Factors" and elsewhere in Armata's filings and reports with the
SEC, including in Armata's Annual Report on Form 10-K, filed with the SEC on March 19, 2020, and Armata's subsequent filings with
the SEC. Armata expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Armata's expectations with regard thereto or any change in events, conditions
or circumstances on which any such statements are based.
Armata Pharmaceuticals, Inc.
Armata Investor Relations:
LifeSci Advisors, LLC
Dan Zacchei / Alex Kovtun