Full Press Release Details
Purple Biotech Announces Closing of $5 Million
Registered Direct Offering
REHOVOT, Israel, October 19, 2023 -- Purple Biotech
Ltd. ("Purple Biotech" or "the Company") (NASDAQ/TASE: PPBT), a clinical-stage company developing first-in-class
therapies that harness the power of the tumor microenvironment to overcome tumor immune evasion and drug resistance, today announced the
closing of its previously announced registered direct offering of 4,347,827 of the Company's American Depositary Shares ("ADSs")
(or ADS equivalents), each ADS representing 10 ordinary shares, at a purchase price of $1.15 per ADS (or ADS equivalent). In addition,
in a concurrent private placement, the Company has issued unregistered warrants to purchase up to 4,347,827 ADSs. The warrants have an
exercise price of $1.25 per ADS and are immediately exercisable upon issuance for a period of five and one-half years.
H.C. Wainwright & Co. acted as the exclusive
placement agent for the offering.
The gross proceeds to the Company from the offering
are approximately $5 million, before deducting the placement agent's fees and other offering expenses payable by the Company. Purple
Biotech intends to use the net proceeds from the offering to fund the development of its oncology therapeutic candidates and for general
working capital and corporate purposes.
The ADSs (or ADS equivalents) described above
(but not the unregistered warrants and the ADSs issuable thereunder) were offered by Purple Biotech pursuant to a "shelf"
registration statement on Form F-3 (File No. 333-268710) previously filed with the Securities and Exchange Commission (the "SEC")
on December 8, 2022 and declared effective by the SEC on May 22, 2023. The offering of the ADSs (or ADS equivalents) in the registered
direct offering was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration
statement. A final prospectus supplement and accompanying prospectus relating to the registered direct offering have been filed with the
SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained on the SEC's website at http://www.sec.gov
or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 865-5711 or e-mail
The unregistered warrants described above were
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 ADSs representing ordinary shares underlying such unregistered warrants, have not been registered
under the Act, or applicable state securities laws. Accordingly, the warrants and the ADSs underlying the unregistered warrants 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 such applicable state securities laws.
In connection with the offering and effective
upon the closing of the offering, the Company amended certain existing warrants to purchase up to an aggregate of 631,556 of the Company's
ADSs that were previously issued in June 2020 and June 2018 at exercise prices of $9.00 to $28.00 per ADS, respectively, such that the
amended warrants have a reduced exercise price of $1.25 per ADS and an extended term of five and one-half years from the closing of the
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in
any state or other 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 other jurisdiction.
About Purple Biotech
Purple Biotech Ltd. (NASDAQ/TASE: PPBT) is a clinical-stage
company developing first-in-class therapies that seek to overcome tumor immune evasion and drug resistance. The Company's oncology
pipeline includes NT219, CM24 and IM1240. NT219 is a dual inhibitor, novel small molecule that simultaneously targets IRS1/2 and STAT3.
In a Phase 1/2 study of NT219, the Company is currently advancing it in a dose escalation as a monotherapy treatment of solid tumors,
and in a dose escalation in combination with cetuximab for the treatment of recurrent and metastatic squamous cell carcinoma of the head
and neck (SCCHN) or colorectal adenocarcinoma (CRC). These studies will be followed by an expansion phase of NT219 at its recommended
Phase 2 level in combination with cetuximab in patients with recurrent and metastatic SCCHN. CM24 is a humanized monoclonal antibody that
blocks CEACAM1, an immune checkpoint protein that supports tumor immune evasion and survival through multiple pathways. The Company is
advancing CM24 as a combination therapy with anti-PD-1 checkpoint inhibitors in a Phase 2 study for the treatment of pancreatic ductal
adenocarcinoma (PDAC). The Company has entered into a clinical collaboration agreement with Bristol Myers Squibb for the Phase 2 clinical
trials to evaluate the combination of CM24 with the PD-1 inhibitor nivolumab in addition to chemotherapy. IM1240 is a preclinical, conditionally-activated
tri-specific antibody that engages both T cells and NK cells to mount a strong, localized immune response within the tumor microenvironment.
The third arm specifically targets the Tumor Associated Antigen (TAA) 5T4 that is expressed in a variety of solid tumors and is correlated
with advanced disease, increased invasiveness and poor clinical outcomes. IM1240 has a cleavable capping technology that confines the
compound's therapeutic activity to the local tumor microenvironment, and thereby potentially increases the anticipated therapeutic
window in patients. The Company's corporate headquarters are located in Rehovot, Israel. For more information, please visit https://purple-biotech.com/.
Forward-Looking Statements and Safe Harbor Statement
Certain statements in this press release that
are forward-looking and not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements that
are not statements of historical fact, and may be identified by words such as "believe", "expect", "intend",
"plan", "may", "should", "could", "might", "seek", "target",
"will", "project", "forecast", "continue" or "anticipate" or their negatives
or variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical matters.
Examples of such statements include, but are not limited to, statements regarding the intended use of net proceeds from the offering.
You should not place undue reliance on these forward-looking statements, which are not guarantees of future performance. Forward-looking
statements reflect our current views, expectations, beliefs or intentions with respect to future events, and are subject to a number of
assumptions, involve known and unknown risks, many of which are beyond our control, as well as uncertainties and other factors that may
cause our actual results, performance or achievements to be significantly different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Important factors that could cause or contribute to such differences include,
among others, risks relating to: market and other conditions; the plans, strategies and objectives of management for future operations;
product development for NT219, CM24 and IM1240; the process by which such early stage therapeutic candidates could potentially lead to
an approved drug product is long and subject to highly significant risks, particularly with respect to a joint development collaboration;
the fact that drug development and commercialization involves a lengthy and expensive process with uncertain outcomes; our ability to
successfully develop and commercialize our pharmaceutical products; the expense, length, progress and results of any clinical trials;
the impact of any changes in regulation and legislation that could affect the pharmaceutical industry; the difficulty in receiving the
regulatory approvals necessary in order to commercialize our products; the difficulty of predicting actions of the U.S. Food and Drug
Administration or any other applicable regulator of pharmaceutical products; the regulatory environment and changes in the health policies
and regimes in the countries in which we operate; the uncertainty surrounding the actual market reception to our pharmaceutical products
once cleared for marketing in a particular market; the introduction of competing products; patents obtained by competitors; dependence
on the effectiveness of our patents and other protections for innovative products; our ability to obtain, maintain and defend issued patents;
the commencement of any patent interference or infringement action against our patents, and our ability to prevail, obtain a favorable
decision or recover damages in any such action; and the exposure to litigation, including patent litigation, and/or regulatory actions,
and other factors that are discussed in our Annual Report on Form 20-F for the year ended December 31, 2022 and in our other filings with
the U.S. Securities and Exchange Commission ("SEC"), including our cautionary discussion of risks and uncertainties under
"Risk Factors" in our Registration Statements and Annual Reports. These are factors that we believe could cause our actual
results to differ materially from expected results. Other factors besides those we have listed could also adversely affect us. Any forward-looking
statement in this press release speaks only as of the date which it is made. We disclaim any intention or obligation to publicly update
or revise any forward-looking statement or other information contained herein, whether as a result of new information, future events or
otherwise, except as required by applicable law. You are advised, however, to consult any additional disclosures we make in our reports
to the SEC, which are available on the SEC's website, https://www.sec.gov.
Chief Financial Officer