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Pharma Tech Outlook | Thursday, May 20, 2021
Entasis Therapeutics Holdings has completed the initial closing of a $7.5M stock and warrant issuance to a subsidiary of Innoviva.
FREMONT, CA: Entasis Therapeutics Holdings Inc., a clinical-stage biopharmaceutical firm based on the discovery and development of new antimicrobial products, recently announced that it had completed the initial closing of a $7.5 million stock and warrant issuance to a subsidiary of Innoviva Inc., in accordance with a securities purchase agreement signed on May 3, 2021. Following the satisfaction of certain closing conditions, such as Entasis stockholder approval, Innoviva will buy out the remaining $20 million in Entasis common stock and warrant securities in a second closing later in the second quarter of 2021 (excluding the consideration payable upon exercise of warrants, if any).
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Entasis intends to use the proceeds of the offering to fund the ongoing development of its innovative pipeline of pathogen-targeted antibacterial product candidates and for general corporate uses. Enastasis pipeline consists of sulbactam-durlobactam (SUL-DUR) for carbapenem-resistant Acinetobacter baumannii infections and zoliflodacin for uncomplicated gonorrhoea, such as infections caused by drug-resistant Neisseria gonorrhoeae. These product candidates are undergoing Phase 3 registrational clinical trials.
Innoviva will buy out 10 million shares of Entasis common stock for $2.00 per share, subject to the terms and conditions of the securities purchase agreement and related agreements and warrants to purchase up to 10 million additional shares of Entasis common stock for $2.00 per share. The stock purchase will be completed in two stages. Innoviva purchased approximately 3.7 million shares of common stock and warrants to purchase about 3.7 million shares of common stock for an aggregate purchase price of roughly $7.5 million at the initial closing on May 3, 2021. At the second closing, Innoviva will buy approximately 6.3 million shares of common stock and warrants to purchase almost 6.3 million shares of common stock for an aggregate purchase price of roughly $12.5 million, subject to the satisfaction of some closing conditions, including Entasis stockholder approval.
Entasis' Board of Directors authorized the transaction, and Entasis shareholders will obtain a proxy statement in the following weeks seeking their permission of the second closing.
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