MediciNova Enters into US$20 Million Securities Purchase Agreement with a fund managed by 3D Investment Partners
12 January 2021 - 1:30PM
MediciNova, Inc., a biopharmaceutical company traded on the NASDAQ
Global Market (NASDAQ:MNOV) and the JASDAQ Market of the Tokyo
Stock Exchange (Code Number: 4875), today announced that it has
entered into a Securities Purchase Agreement pursuant to which
MediciNova has agreed to issue US$20 million in shares of its
common stock to 3D Opportunity Master Fund, a fund managed by 3D
Investment Partners Pte. Ltd. (“3D”), in a private placement
transaction.
MediciNova intends to use the proceeds received from the
private placement primarily for the following three programs:
1) To initiate a new clinical trial of MN-166 (ibudilast) for
glioblastoma, which could be a pivotal trial.
2) To develop an intravenous formulation of MN-166 (ibudilast),
which is ideal for amyotrophic lateral sclerosis (ALS) patients who
have difficulty with swallowing.
3) To initiate a Phase 2 clinical trial of MN-001 (tipelukast)
in nonalcoholic steatohepatitis (NASH).
Yuichi Iwaki, MD, PhD, President and Chief Executive Officer
of MediciNova, Inc., commented, "We are very pleased to reach
this agreement with 3D Opportunity Master Fund. This investment
will enable us to accelerate development of additional programs in
our diverse pipeline. We believe that it is essential for
shareholders and management to share the goal of increasing
corporate value and to have investments that are accompanied by
capital discipline. In this regard, we believe that 3D is an
investor with a sincere desire to support our efforts to increase
the true corporate value of MediciNova, which is our ultimate
goal."
Motoki Sato, MD, Managing Director of 3D Investment Partners
Pte. Ltd., commented, “We believe that this investment will
meaningfully accelerate MediciNova’s drug development in the
pipeline and could lead to unleashing its highest potential in
value. Significant benefits could be brought to and shared among
patients and healthcare professionals in need of effective drugs to
combat rare diseases, as well as MediciNova’s stakeholders. We are
pleased to have built an effective relationship
with MediciNova through incentive alignment between
management and shareholders.”
About 3D Investment
Partners
3D Investment Partners Pte. Ltd. is a
value-oriented investment manager founded in 2015 and based in
Singapore. 3D seeks value investing opportunities through a process
of bottom-up fundamental research and analysis. By unlocking value
with an emphasis on alignment of interest with the management teams
of their portfolio companies, 3D delivers its clients superior
long-term compounding returns with the spirit of “Sampo Yoshi”
– a Japanese business core value that one should do business in a
way that is good for all three parties: the seller, the buyer, and
society at large. 3D, together with its portfolio company’s
management, pursues the same goal of increasing value for all
stakeholders.
About
MediciNova
MediciNova, Inc. is a publicly-traded
biopharmaceutical company founded upon developing novel,
small-molecule therapeutics for the treatment of diseases with
unmet medical needs with a primary commercial focus on the U.S.
market. MediciNova's current strategy is to focus on BC-PIV
SARS-COV-2 vaccine for COVID-19, MN-166 (ibudilast) for
neurological disorders such as progressive multiple sclerosis (MS),
amyotrophic lateral sclerosis (ALS), degenerative cervical
myelopathy (DCM), substance dependence (e.g., alcohol use disorder,
methamphetamine dependence, opioid dependence) and glioblastoma
(GBM), as well as prevention of acute respiratory distress syndrome
(ARDS) caused by COVID-19, and MN-001 (tipelukast) for fibrotic
diseases such as nonalcoholic steatohepatitis (NASH) and idiopathic
pulmonary fibrosis (IPF). MediciNova’s pipeline also includes
MN-221 (bedoradrine) and MN-029 (denibulin). For more information
on MediciNova, Inc., please visit www.medicinova.com.
Statements in this press release that are not
historical in nature constitute forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include, without limitation, statements regarding the future
development and efficacy of BC-PIV SARS-COV-2 vaccine, MN-166,
MN-001, MN-221, and MN-029. These forward-looking statements may be
preceded by, followed by, or otherwise include the words
"believes," "expects," "anticipates," "intends," "estimates,"
"projects," "can," "could," "may," "will," "would," “considering,”
“planning” or similar expressions. These forward-looking statements
involve a number of risks and uncertainties that may cause actual
results or events to differ materially from those expressed or
implied by such forward-looking statements. Factors that may cause
actual results or events to differ materially from those expressed
or implied by these forward-looking statements include, but are not
limited to, risks related to the closing of the private placement,
risks of obtaining future partner or grant funding for development
of BC-PIV SARS-COV-2 vaccine, MN-166, MN-001, MN-221, and MN-029
and risks of raising sufficient capital when needed to fund
MediciNova's operations and contribution to clinical development,
risks and uncertainties inherent to the development of formulations
as well as the initiation and conduct of clinical trials, including
the potential cost, expected timing and risks associated with
clinical trials designed to meet FDA guidance and the viability of
further development considering these factors, product development
and commercialization risks, the uncertainty of whether the results
of clinical trials will be predictive of results in later stages of
product development, the risk of delays or failure to obtain or
maintain regulatory approval, risks associated with the reliance on
third parties to sponsor and fund clinical trials, risks regarding
intellectual property rights in product candidates and the ability
to defend and enforce such intellectual property rights, the risk
of failure of the third parties upon whom MediciNova relies to
conduct its clinical trials and manufacture its product candidates
to perform as expected, the risk of increased cost and delays due
to delays in the commencement, enrollment, completion or analysis
of clinical trials or significant issues regarding the adequacy of
clinical trial designs or the execution of clinical trials, and the
timing of expected filings with the regulatory authorities,
MediciNova's collaborations with third parties, the availability of
funds to complete product development plans and MediciNova's
ability to obtain third party funding for programs and raise
sufficient capital when needed, and the other risks and
uncertainties described in MediciNova's filings with the Securities
and Exchange Commission, including its annual report on Form 10-K
for the year ended December 31, 2019 and its subsequent periodic
reports on Form 10-Q and current reports on Form 8-K. Undue
reliance should not be placed on these forward-looking statements,
which speak only as of the date hereof. MediciNova disclaims any
intent or obligation to revise or update these forward-looking
statements.
INVESTOR CONTACT:Geoff O'BrienVice PresidentMediciNova,
Inc.info@medicinova.com
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