Entasis Therapeutics Announces $25 Million Private Placement
August 28 2020 - 7:00AM
Entasis Therapeutics Holdings Inc. (Nasdaq: ETTX) (“Entasis”), a
clinical-stage biopharmaceutical company focused on the discovery
and development of novel antibacterial products, announced today it
has entered into a definitive agreement to sell securities in a
private placement with Innoviva, Inc. (Nasdaq: INVA), a company
with a portfolio of royalties, and another healthcare-focused
institutional investor. The gross proceeds to the Company from the
private placement, before deducting the placement agent's fees and
other estimated offering expenses payable by the Company, are
expected to be approximately $25 million.
The Company intends to use the net proceeds from
the private placement for the continued support of the ongoing
ATTACK Phase 3 registration clinical trial as well as for working
capital and other general corporate purposes. ATTACK is a global
two-part Phase 3 registration trial evaluating SUL-DUR for the
treatment of patients with pneumonia and bloodstream infections
caused by carbapenem-resistant Acinetobacter baumannii.
Pursuant to the terms of the securities purchase
agreement, the Company will issue 9,345,794 units at a price of
$2.675 per unit. Each unit consists of approximately one share of
common stock and a warrant to purchase one share of common stock at
an exercise price of $2.675. Certain investors may elect to receive
pre-funded warrants to purchase common stock in lieu of a portion
of their common stock. The private placement is expected to close
on or about September 1, 2020, subject to the satisfaction of
customary closing conditions.
Cantor Fitzgerald & Co. is acting as the
lead placement agent for the private placement. A.G.P./Alliance
Global Partners is also acting as a placement agent.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy the securities. The
securities to be sold in the private placement have not been
registered under the Securities Act of 1933, as amended (the
“Securities Act”), or applicable state securities laws, and
accordingly 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 Securities Act
and such applicable state securities laws. Entasis has agreed to
file a registration statement with the United States Securities and
Exchange Commission registering the resale of the securities issued
in the private placement. Any offering of the securities under such
resale registration statement will only be by means of a
prospectus.
About EntasisEntasis is a
clinical-stage biopharmaceutical company focused on the discovery,
development and commercialization of novel antibacterial products
to treat serious infections caused by multidrug-resistant
Gram-negative bacteria. Entasis’ pathogen-targeted design platform
has produced a pipeline of product candidates, including
sulbactam-durlobactam (targeting Acinetobacter baumannii
infections), zoliflodacin (targeting Neisseria gonorrhoeae
infections), ETX0282CPDP (targeting Enterobacteriaceae infections)
and ETX0462 (targeting Pseudomonas infections). For more
information, visit www.entasistx.com.
Entasis Forward-looking
StatementsThis press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Words such as “may,” “will,” “expect,” “plan,”
“anticipate,” “estimate,” “intend” and similar expressions (as well
as other words or expressions referencing future events, conditions
or circumstances) are intended to identify forward-looking
statements. These forward-looking statements are based on Entasis’
expectations and assumptions as of the date of this press release.
Each of these forward-looking statements involves risks and
uncertainties. Actual results may differ materially from these
forward-looking statements. Many factors may cause differences
between current expectations and actual results, including the
impact of the COVID-19 pandemic, unexpected safety or efficacy data
observed during non-clinical or clinical studies, clinical site
activation rates or clinical trial enrollment rates that are lower
than expected and changes in expected or existing competition,
changes in the regulatory environment, failure of Entasis’
collaborators to support or advance collaborations or product
candidates and unexpected litigation or other disputes. Many of
these factors are beyond Entasis’ control. These and other risks
and uncertainties are described more fully in the Entasis’ filings
with the U.S. Securities and Exchange Commission, including the
section titled “Risk Factors” contained therein. Forward-looking
statements contained in this announcement are made as of this date,
and except as required by law, Entasis assumes no obligation to
update any forward-looking statements contained herein to reflect
any change in expectations, even as new information becomes
available.
Company Contact Kyle Dow Entasis Therapeutics
(781) 810-0114 kyle.dow@entasistx.com
Investor Relations ContactsJames SaliernoThe
Ruth Group(646) 536-7028jsalierno@theruthgroup.com
Media ContactKirsten ThomasThe Ruth Group(508)
280-6592kthomas@theruthgroup.com
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