DOR BioPharma, a late-stage biotechnology company, has entered into common stock purchase agreements with institutional investors totalling approximately USD3.85m.
DOR’s North American commercial partner, Sigma-Tau Pharmaceuticals, participated in this financing.
Under the terms of the agreements, DOR will sell approximately 15,200,000 common shares together with a five-year warrant to purchase up to approximately 7,600,000 shares of DOR common stock at USD0.278 per share, for an aggregate price of approximately USD3.85m.
The expiration date of the warrants will be accelerated if the company’s common stock meets certain price thresholds and DOR would receive additional gross proceeds of approximately USD2.11m if exercised.
"We are pleased with this vote of confidence and support from our partner Sigma-Tau and the institutional investors," says Christopher J. Schaber, president and chief executive officer of DOR. "This financing is designed to provide the fuel to complete our confirmatory phase 3 clinical study of orBec in the treatment of acute GI GVHD, an unmet medical need. We are looking forward to the imminent initiation of this trial."
DOR BioPharma is a late-stage biopharmaceutical company developing products to treat life-threatening side effects of cancer treatments and serious gastrointestinal diseases, and vaccines for certain bioterrorism agents. DOR’s lead product, orBec (oral beclomethasone dipropionate), is a locally acting corticosteroid being developed for the treatment of GI GVHD, a common and potentially life-threatening complication of hematopoietic cell transplantation.
