Kiromic BioPharma Arranges Up to $10 Million Financing
27 October 2022 - 11:48PM
Business Wire
Litigation with Sabby and Another Institutional
Shareholder Settled
Kiromic BioPharma, Inc. (NASDAQ: KRBP) (“Kiromic” or the
“Company”), a clinical-stage fully-integrated biotherapeutics
company using its proprietary DIAMOND® artificial intelligence and
data mining platform to develop cell and gene therapies with a
focus on immuno-oncology, announces it entered into a Standby
Equity Purchase Agreement (the “SEPA”) with YA II PN, LTD, a
partnership managed by Yorkville Advisors Global LP, a global
investment manager, to sell up to $8 million of the Company’s stock
at any time during the 24 months following the date of the SEPA,
subject to the effectiveness of a registration statement with the
Securities and Exchange Commission and other conditions.
The SEPA gives Kiromic the right, but not the obligation, to
sell up to $5 million of shares of common stock, which may be
increased by an additional $3 million of shares of common stock, at
the Company’s request, subject to terms and limitations set forth
in the agreement. The number of shares issuable under the SEPA is
limited to a number equivalent to 19.99 % of the outstanding common
stock of the Company as of the date of the SEPA agreement unless
certain pricing conditions are met, which could have the effect of
limiting the total proceeds under the SEPA.
Kiromic separately also secured $2 million in gross proceeds
from a new investor through the issuance of a secured convertible
promissory note. The convertible note converts into the Company’s
common stock at a conversion price equal to $0.35 per share.
Following the close of the two financings, Kiromic also
announced the completed settlement of its prior litigation with
Sabby Capital Management, another institutional shareholder and
certain affiliates.
“This equity facility is an important piece of our financing
strategy that not only provides flexibility and additional runway
towards achieving our clinical milestones, but also enables us to
settle a key prior legal issue,” stated Pietro Bersani, Chief
Executive Officer of Kiromic. “We believe Yorkville Advisors will
be a strong financial partner for us. With the combination of both
financings, we have the facilities in place whereby we have the
potential to raise up to $10 million of financing, subject to
certain conditions, of which $2 million has already been
secured, and we look forward to ongoing discussions with additional
potential investors,” continued Mr. Bersani.
For further information on the SEPA or convertible note,
including important terms and conditions, please see Company’s
filings with the Securities and Exchange Commission, including the
Company’s Current Reports on Form 8-K filed with the Securities and
Exchange Commission.
About Kiromic BioPharma
Kiromic BioPharma, Inc. is a clinical-stage, fully integrated
biotherapeutics company using its proprietary DIAMOND® artificial
intelligence (AI) 2.0 target discovery engine to detect, develop,
and commercialize cell and gene therapies with a therapeutic focus
on immuno-oncology. Kiromic is developing a multi-indication
allogeneic cell therapy platform that exploits the natural potency
of Gamma Delta T-cells to target solid cancers. Kiromic’s DIAMOND®
AI is where data science meets target identification to
dramatically compress the years and hundreds of millions of dollars
required to develop a live drug. The Company maintains offices in
Houston, Texas. To learn more, visit www.kiromic.com and connect
with us on Twitter and LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties. Kiromic makes such
forward-looking statements pursuant to the safe harbor provisions
of the United States Private Securities Litigation Reform Act,
Section 21E of the Securities Exchange Act of 1934, as amended, and
other federal securities laws. All statements other than statements
of historical facts are forward-looking statements. In some cases,
you can identify forward-looking statements by terms such as:
“will,” “potential,” “could,” “can,” “believe,” “intends,”
“continue,” “plans,” “expects,” “anticipates,” “estimates,” “may,”
or the negative of these terms or other comparable terminology.
These forward-looking statements include, but are not limited to,
statements regarding: Kiromic’s ability to achieve its objectives;
Kiromic’s financing strategy and availability of funds; and the
ability to issue shares under the SEPA. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, levels of activity,
performance, or achievements to be materially different from the
information expressed or implied expressed or implied by these
forward-looking statements. These risks and uncertainties include,
but are not limited to, the risks and uncertainties discussed in
our Annual Report on Form 10-K for the year ended December 31,
2021, and as detailed from time to time in our other SEC filings,
and the terms and conditions of the SEPA, including the
requirements to have an effective registration statements, share
caps in the SEPA and the terms and conditions of the SEPA,
including with respect to volume and pricing requirements. You
should not rely upon forward-looking statements as predictions of
future events. Although we believe that the expectations reflected
in the forward-looking statements are reasonable, we cannot
guarantee that the future results, levels of activity, performance,
or events and circumstances reflected in the forward-looking
statements will be achieved or occur. Moreover, neither we nor any
other person assumes responsibility for the accuracy and
completeness of the forward-looking statements. Such
forward-looking statements relate only to events as of the date of
this press release. We undertake no obligation to update any
forward-looking statements except to the extent required by law.
There can be no assurance that any sales will occur under the
SEPA.
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version on businesswire.com: https://www.businesswire.com/news/home/20221027005642/en/
Kiromic BioPharma Linda Phelan Dyson, MPH Global Head,
Corporate Communications ldyson@kiromic.com M: 281-468-7683
LHA Investor Relations Tirth T. Patel tpatel@lhai.com
212-201-6614
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