PHILADELPHIA, Aug. 10, 2017 /PRNewswire/ -- Aevi Genomic
Medicine, Inc. (NASDAQ: GNMX) (the "Company") today announced
the execution of a definitive agreement to sell shares of common
stock and warrants to purchase common stock in a private placement,
or PIPE, to certain accredited investors, led by Children's
Hospital of Philadelphia Foundation ("the CHOP Foundation").
The Company will sell 22.2 million shares of its common stock
with warrants to purchase approximately 4.0 million additional
shares of its common stock, for aggregate proceeds of $28.0 million, before expenses. The CHOP
Foundation led the financing, with additional participation by
other undisclosed existing blue-chip investors. The CHOP Foundation
has committed to provide up to an additional $5.0 million of equity financing through
June 30, 2018, subject to certain
terms and conditions.
"Children's Hospital of Philadelphia is a globally renowned research
organization, and they are a tremendously valued partner to the
Company," commented Mike Cola,
President and Chief Executive Officer of Aevi Genomic Medicine. "We
are pleased with its decision to support us in this
transaction."
"Aevi Genomic Medicine has been our collaborator in the pursuit
of new and effective treatments for severe and debilitating
childhood diseases since 2014. We are very hopeful that this
investment will yield benefits that will make new treatments
quickly available to families," said Bryan
Wolf, Executive Vice President and Chief Scientific Officer
of Children's Hospital of Philadelphia. "Research happening
right now has the potential to revolutionize medicine. We need
partners like Aevi Genomic Medicine to help us get us across the
finish line faster. We look forward to what the future holds," he
said.
The Company intends to use the aggregate net proceeds of the
PIPE to further the development of its two lead clinical programs,
to support its ongoing collaboration with Children's Hospital of
Philadelphia, to develop other
product candidates and for general corporate purposes.
Jefferies, LLC served as financial advisor to Aevi Genomic
Medicine for the PIPE and Evercore, LLC served as financial advisor
to the CHOP Foundation in such transaction.
Subject to the approval of the Company's stockholders and the
satisfaction of certain customary closing conditions, the PIPE is
expected to close in the fourth quarter of 2017. The Company has
not yet set a date for a stockholder meeting to seek the approval
of the PIPE. Once a meeting date has been determined, the
Company will send a notice and proxy statement relating to the
meeting and the approval being sought to its stockholders.
The securities being sold in this PIPE have not been registered
under the Securities Act of 1933, as amended (the "Securities
Act"), and will not be able to be offered or sold in the United States absent registration
thereunder or an applicable exemption from the registration
requirements. The Company has agreed to file a resale registration
statement with the Securities and Exchange Commission within 60
days of the PIPE closing to register the resale of the shares of
common stock, including those underlying the warrants, issued in
the PIPE.
This notice does not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be
any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state.
About Aevi Genomic Medicine, Inc.
Aevi Genomic Medicine, Inc. is dedicated to unlocking the
potential of genomic medicine to translate genetic discoveries into
novel therapies. Driven by a commitment to patients with pediatric
onset life-altering diseases, the Company's research and
development efforts leverage an internal genomics platform and an
ongoing collaboration with the Center for Applied Genomics at The
Children's Hospital of Philadelphia. Based on discoveries
from the genomics collaboration, the Company currently has two
programs in clinical development, AEVI-001 for mGLuR+ ADHD and
AEVI-002 for severe pediatric onset Crohn's disease.
Forward-looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934 and as that term is defined
in the Private Securities Litigation Reform Act of 1995, which
include all statements other than statements of historical fact,
including (without limitation) those regarding the expected timing
of the closing of the private placement, the Company's development
and business strategy, its product candidates and the plans and
objectives of management for future operations. The Company intends
that such forward-looking statements be subject to the safe harbors
created by such laws. Forward-looking statements are sometimes
identified by their use of the terms and phrases such as
"estimate," "project," "intend," "forecast," "anticipate," "plan,"
"planning, "expect," "believe," "will," "will likely," "should,"
"could," "would," "may" or the negative of such terms and other
comparable terminology. All such forward-looking statements are
based on current expectations and are subject to risks and
uncertainties. Should any of these risks or uncertainties
materialize, or should any of the Company's assumptions prove
incorrect, actual results may differ materially from those included
within these forward-looking statements. Accordingly, no undue
reliance should be placed on these forward-looking statements,
which speak only as of the date made. The Company expressly
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statements are based. As a result of these factors,
the events described in the forward-looking statements contained in
this release may not occur.
CONTACT:
Aevi Genomic Medicine, Inc.
Brian Piper
Brian.Piper@aevigenomics.com
Westwicke Partners
Chris Brinzey
+1-339-970-2843
Chris.brinzey@westwicke.com
MEDIA INQUIRIES:
FTI Consulting
Irma Gomez-Dib
+1-212-850-5761
+1-415-706-9155
irma.gomez-dib@fticonsulting.com
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SOURCE Aevi Genomic Medicine, Inc.