Synthetic Biologics Inc (NYSEMKT:SYN) a late-stage clinical firm advancing therapeutics concentrated on the gut microbiome, reported the pricing of its underwritten public offering of 25 million shares of its warrants and common stock to purchase 50 million shares of its stock at a price of $1 per share and additional warrants.
The company reported that gross proceeds from the offering, discounting the proceeds from the warrants exercise, before deducting underwriting commissions, other offering expenses and discounts, are projected to be nearly $25 million. In case of full exercise, the warrants could add in additional net proceeds of $78.8 million.
The Underwriter has one-month option to buy up to 3.750 million additional shares of common stock and for warrants, it is up to 7.5 million additional shares of Synthetic’s common stock. The offering is projected to close in this week, subject to regular closing conditions.
In the first week of November, Synthetic Biologics released an operational update and posted financial report for the quarter closed September 30, 2016. Jeffrey Riley, the CEO and President of Synthetic Biologics, said that clinical advancement for 2 lead gut microbiome-focused medication candidates shows critical achievements for the firm as they continue evolution from an early-stage advancement firm to a late-stage clinical advancement firm focused on commercialization.
During the third quarter, the company closed enrollment in Phase IIb proof-of-concept clinical study to assess the ability of ribaxamase to safeguard the gut microbiome from the impact of certain commonly applied intravenous beta-lactam antibiotics for the cure of C. difficile infection, antibiotic-associated diarrhea and the appearance of antibiotic-resistant organisms.
Riley added that they are the only commercial firm pursuing drug advancement to get a government contract to probe antimicrobial resistance. If it happens, this will support their clinical research intended at deciding whether ribaxamase may achieve primary endpoint in Phase 2b trial. The team look forward to sharing data from this study in 1Q2017.