iBio, Inc. (NYSEA:IBIO) (“iBio” or the “Company”), a developer
of next-generation biopharmaceuticals and pioneer of the
sustainable, plant-based
FastPharming System, today announced it has
purchased the manufacturing facility it previously operated under a
lease from two affiliates of Eastern Capital Limited (the “Eastern
Affiliates”). The Company also acquired the approximate 30% equity
interest in iBio CDMO, LLC. (the “CDMO”) held by the Eastern
Affiliates. As a result, the subsidiary and its intellectual
property are now wholly-owned by iBio.
“We are very pleased to now have full control of
our facility, as well as the CDMO entity which holds the exclusive
rights to manufacture using the FastPharming
System in the United States,” said Tom Isett, Chairman & CEO of
iBio. “In addition to immediately reducing our facility carrying
costs by approximately 67%, this transaction should provide us with
even greater strategic and operational flexibility to continue
rapidly growing our team in Texas, as well as driving further
adoption of FastPharming as the green alternative
to traditional mammalian cell culture bioproduction around the
globe.”
The 130,000 square foot Bryan, TX, facility is
subject to a ground lease with Texas A&M University. As part of
the transaction, the CDMO becomes the ground lease tenant until
2060 upon exercise of available extensions.
Before fees and settlement costs, the cost of
the transaction was $28,750,000, comprised of $28,000,000 in cash
plus warrants to purchase 1,000,000 shares of iBio common stock.
iBio issued additional warrants to purchase 289,581 shares of
common stock to pay for the final rent due. The total warrants to
purchase 1,289,581 shares of common stock are immediately
exercisable, will expire on October 10, 2026, and have an exercise
price of $1.33 per share.
iBio provided approximately $6,000,000 in
capital to fund the purchase. To fund the remaining cash portion of
the transaction, iBio entered into a $22,375,000 Senior Secured
Term Loan with Woodforest National Bank. The loan bears interest at
3.25% and matures in two years, providing iBio with the flexibility
to explore potential longer-term financing options for its
FastPharming Facility, including, but not limited
to, a potential sale-leaseback transaction. Taking into account
these potential financing options, combined with the facility
carrying cost savings expected to be achieved through this
transaction, the Company continues to believe that its current cash
position is sufficient to fund its operations through the first
calendar quarter of 2023.
About iBio, Inc.
iBio is a developer of next-generation
biopharmaceuticals and a pioneer in sustainable, plant-based
biologics manufacturing.
Its FastPharming System® combines
vertical farming, automated hydroponics, and novel glycosylation
technologies to rapidly deliver high-quality monoclonal antibodies,
antigens, and other proteins. iBio is developing proprietary
biopharmaceuticals for the treatment of cancers, as well as
fibrotic and infectious diseases. The Company’s wholly-owned
subsidiary, iBio CDMO LLC,
provides FastPharming Contract
Development and Manufacturing Services along
with Glycaneering Development Services™
for advanced recombinant protein design. For more information,
visit www.ibioinc.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release
constitute "forward-looking statements" within the meaning of the
federal securities laws. Words such as "may," "might," "will,"
"should," "believe," "expect," "anticipate," "estimate,"
"continue," "predict," "forecast," "project," "plan," "intend" or
similar expressions, or statements regarding intent, belief, or
current expectations, are forward-looking statements. These
forward-looking statements are based upon current estimates and
assumptions and include statements regarding the transaction
providing the Company with even greater strategic and operational
flexibility to continue rapidly growing its team in Texas, as well
as driving further adoption of FastPharming as the
green alternative to traditional mammalian cell culture
bioproduction around the globe, potential longer-term financing
options for the Company’s FastPharming Facility,
including, but not limited to, a potential sale-leaseback
transaction, carrying cost savings expected to be achieved through
the transaction, and the Company’s current cash position being
sufficient to fund its operations through the first calendar
quarter of 2023. While the Company believes these forward-looking
statements are reasonable, undue reliance should not be placed on
any such forward-looking statements, which are based on information
available to us on the date of this release. These forward-looking
statements are subject to various risks and uncertainties, many of
which are difficult to predict that could cause actual results to
differ materially from current expectations and assumptions from
those set forth or implied by any forward-looking statements.
Important factors that could cause actual results to differ
materially from current expectations include, among others, the
Company’s ability to obtain longer-term financing options for its
FastPharming Facility and other opportunities for
FastPharming, ability to achieve carrying
cost savings and to fund operations with its current cash position
through the first calendar quarter of 2023, its ability to obtain
or maintain the capital or grants necessary to fund its research
and development activities and whether the Company will incur
unforeseen expenses or liabilities or other market factors,
successful compliance with governmental regulations applicable to
its manufacturing facilities, competition, its ability to retain
its key employees or maintain its NYSE American listing, its
ability to increase its authorized shares, and the other factors
discussed in the Company’s filings with the SEC including the
Company’s Annual Report on Form 10-K for the year ended June 30,
2021 and the Company’s subsequent filings with the SEC on Forms
10-Q and 8-K. The information in this release is provided only as
of the date of this release, and we undertake no obligation to
update any forward-looking statements contained in this release on
account of new information, future events, or otherwise, except as
required by law.
Contact:
Stephen KilmeriBio, Inc.Investor Relations(646)
274-3580skilmer@ibioinc.com
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