Peak Bio, Inc. Announces Closing of up to $100 Million Common Stock Purchase Transaction with White Lion Capital
04 November 2022 - 10:30PM
Business Wire
Peak Bio, Inc. ("Peak Bio" or the "Company") (NASDAQ: PKBO), a
clinical-stage biopharmaceutical company focused on developing the
next-generation of therapeutics to treat oncology and inflammatory
diseases, today announced that it has entered into a Common Stock
Purchase Agreement (the "Agreement") with White Lion Capital, LLC
("White Lion Capital"). The Agreement governs a committed equity
facility that provides the Company with the right, without the
obligation, to sell White Lion Capital up to $100 million of its
common stock over a 36-month period, subject to certain limitations
and conditions. The Company intends to use the net proceeds from
the transaction for working capital to support its clinical and
preclinical programs.
Stephen LaMond, PharmD, MBA, Peak Bio, Inc. COO, commented, "We
are pleased to announce the closing of the Agreement with White
Lion Capital as it demonstrates the strong vote of confidence we
are receiving from investors. This equity line will help bolster
our investments in our programs and allow for opportunistic
portfolio expansion. ”
About Peak Bio, Inc. Peak Bio is a clinical-stage
biopharmaceutical company focused on developing therapeutics
addressing significant unmet needs in the areas of oncology and
inflammation. Peak Bio’s management team has a combined 50 years of
industry experience in the areas of small molecules, antibodies,
and antibody-drug-conjugates (ADC), forging successful companies
that create differentiated cancer and immunological based
therapeutics.
Peak Bio’s lead product candidate, PHP-303, is a 5th generation,
small molecule, neutrophil elastase inhibitor currently awaiting
initiation of a Phase II clinical study in the genetic orphan
disease called Alpha1 anti-trypsin deficiency disorder (AATD).
Interim Phase 2 clinical trial results are expected by the end of
2023. Peak Bio has successfully completed two Phase 1 clinical
studies in human subjects: a single ascending dose trial (SAD) and
a multiple ascending dose trial (MAD). The SAD and MAD PHP-303
clinical studies demonstrated a favorable safety profile, and a
dose was established for Peak Bio’s upcoming clinical trials.
Peak Bio’s cancer platform consists of novel payloads/toxins in
conjunction with a developing antibody-drug-conjugates (ADC)
pipeline to address a growing unmet need in cancer care. Peak Bio’s
current ADC approach unites conventional and direct targeting of
cancer cells with toxins while also engaging the immune system. The
Peak Bio payload stimulates the immune system which in turn
cooperates with cancer cell killing and leaves behind immune memory
cells. In addition, the potential for immune reengagement when the
cancer reoccurs could be an exciting and important advancement in
cancer care with this dual mechanistic approach to cancer
therapeutics. Peak Bio’s lead payload appears to be a poor
substrate for multi-drug resistance (MDR) transporters which is a
growing concern in the ADC field. For more information, please
visit https://peak-bio.com.
Forward-Looking Statements This press release contains
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include,
but are not limited to, statements about future financial and
operating results, plans, objectives, expectations and intentions
with respect to future operations, products and services and
expectations regarding the recent business combination between Peak
Bio and Ignyte Acquisition Corp. (the “Business
Combination”), including capital raised in connection with the
business combination, and other statements identified by words such
as “will likely result,” “are expected to,” “will continue,” “is
anticipated,” “estimated,” “believe,” “intend,” “plan,”
“projection,” “outlook” or words of similar meaning. Such
forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally
beyond our control. Actual results and the timing of events may
differ materially from the results anticipated in these
forward-looking statements.
The following factors, among others, could cause actual results
and the timing of events to differ materially from the anticipated
results or other expectations expressed in the forward-looking
statements:
(i) the effect of the announcement of the completion of the
Business Combination on Peak Bio’s business relationships,
operating results and business generally; (ii) risks that the
transaction disrupts current plans and operations of Peak Bio;
(iii) the outcome of any legal proceedings that may be instituted
against Peak Bio related to the Business Combination; (iv) the
ability to maintain the listing of Peak Bio’s securities on a
national securities exchange; (v) changes in the competitive
industries in which Peak Bio operates, variations in operating
performance across competitors, changes in laws and regulations
affecting Peak Bio’s business and changes in the combined capital
structure; (vi) the ability to implement business plans, forecasts
and other expectations after the completion of the Business
Combination, and identify and realize additional opportunities;
(vii) the risk of downturns in the market and Peak Bio’s industry
including, but not limited to, as a result of the COVID-19
pandemic; (viii) costs related to the transaction and the failure
to realize anticipated benefits of the Business Combination or to
realize estimated pro forma results and underlying assumptions; and
(ix) risks and uncertainties related to Peak Bio’s business,
including, but not limited to, those related to regulation, its
supply chain, its limited operating history, highly competitive
markets and competition, data privacy and cybersecurity, its
ability to grow, its financial condition and potential dilution,
its forecasts, expansion, intellectual property, current or future
litigation, capital requirements and the need for additional
capital, third-party manufacturers, and cybersecurity. The
foregoing list of factors is not exclusive. You should carefully
consider the foregoing factors and the other risks and
uncertainties described in the “Risk Factors” section of the
definitive proxy statement and other documents filed by Peak Bio
from time to time with the SEC. These filings identify and address
other important risks and uncertainties that could cause actual
events and results to differ materially from those contained in the
forward-looking statements.
Actual results, performance or achievements may differ
materially, and potentially adversely, from any projections and
forward-looking statements and the assumptions on which those
forward-looking statements are based. There can be no assurance
that the data contained herein is reflective of future performance
to any degree. You are cautioned not to place undue reliance on
forward-looking statements as a predictor of future performance as
projected financial information and other information are based on
estimates and assumptions that are inherently subject to various
significant risks, uncertainties and other factors, many of which
are beyond our control. All information set forth herein speaks
only as of the date hereof in the case of information about Bio or
the date of such information in the case of information from
persons other than Peak Bio, and we disclaim any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.
Forecasts and estimates regarding Peak Bio’s industry and end
markets are based on sources we believe to be reliable, however
there can be no assurance these forecasts and estimates will prove
accurate in whole or in part. Annualized, pro forma, projected and
estimated numbers are used for illustrative purposes only, are not
forecasts and may not reflect actual results.
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version on businesswire.com: https://www.businesswire.com/news/home/20221104005144/en/
Stephen LaMond, PharmD., MBA COO Peak Bio, Inc. +1-650-549-9103
steve.lamond@peak-bio.com
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