Plasmatech Biopharmaceuticals Inc (NASDAQ:PTBI) is one of the leading biopharmaceutical companies in the country with a primary focus on gene therapy and advancing cell therapy. As per the reports, the company has closed an equity funding worth as much as $10 million at $8 per share for 125,000 shares and warrants to buy 625,000 shares of common stock.
How Lucrative The Deal Is:
All the warrants can be exercised at $10 per share for maximum 30 months from the date of closing the transaction. The company plans to use the proceeds for providing support to the continued development of various programs run by the company in orphan diseases. Other objectives include working capital requirements, general corporate purposes, expansion of the portfolio in various rare disease programs, etc.
The senior leadership team of the company is delighted to have received this financing. According to Steven H. Rouhandeh, Executive Chairman, Plasmatech, support given to the company shows the trust of the investment community on Plasmatech and its professional objectives. The company has been trying very hard to be a leader in the rare disease therapies for months now. In order to enhance its expertise in the same field, Plasmatech acquired Abeona Therapeutics in the last week. It had entered into an agreement with Abeona Therapeutics to buy it for an undisclosed amount.
Apart from this acquisition, the company is also focusing on various programs in Sanfilippo Syndrome to get more clarity about this field than before. Rouhandeh clarified that the recent financing worth $10 million was not necessary to execute the acquisition transaction. Plasmatech would utilize this money in manufacturing of clinical material, the in-licensing of synergistic and complementary programs in gene and cell therapies and expansion the efforts to identify orphan proteins.
Rouhandeh anticipates that coming few months will be critical for the company, and the management team will need to put 100% efforts to get things done in an effective way.
