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- Initial capital funds expansion of Phase 1b trial in severe alcohol-associated hepatitis and extends cash runway
- Phase Ib data in expanded study expected in 1H 2025
At the closing, the Company will issue to the investors 1,089,033 shares of common stock and pre-funded warrants to purchase 40,000 shares of common stock, at a purchase price of
- Series A common stock warrants to purchase up to 1,129,033 shares of common stock with an exercise price of
$15.50 per share, for aggregate gross proceeds of up to approximately$17.5 million , exercisable immediately upon issuance for 5 years.
- Series B common stock warrants to purchase up to 1,228,071 shares of common stock with an exercise price of
$14.25 per share, for aggregate gross proceeds of up to approximately$17.5 million , exercisable immediately upon issuance until the fifth trading day following the Company’s announcement that (i) it has completed the enrollment of at least 15 patients with a 30-day mortality rate less than 30% in the Company’s SZN-043 Phase 1b clinical trial for the treatment of severe alcohol-associated hepatitis, with no recommended changes by the Safety Review Committee to the study design, including changes related to dose or schedule, and (ii) Safety Review Committee approval for the Company to advance to a higher dose cohort.
- Series C common stock warrants to purchase up to 4,375,000 shares of common stock with an exercise purchase price of
$16.00 per share, for aggregate gross proceeds of up to approximately$70 million , exercisable for 30 days following the Company’s announcement of final data from the SZN-043 phase 1b clinical trial for the treatment of severe alcohol-associated hepatitis.
- Series D common stock warrants to purchase up to 4,375,000 shares of common stock with an exercise price of
$16.00 per share, for aggregate gross proceeds of up to approximately$70 million , exercisable for 30 days following the Company’s announcement of the enrollment of at least 50 patients in the SZN-043 Phase 2/3 clinical trial for the treatment of severe alcohol-associated hepatitis.
The private placement includes participation from new and existing investors, including
In addition, members of management will purchase an additional 2,948 shares of common stock at
The Company intends to use the net proceeds from the private placement to fund the SZN-043 clinical development program, including the expansion of the SZN-043 Phase 1b clinical trial for the treatment of severe alcohol-associated hepatitis to 30 patients, and for other general corporate purposes. The net proceeds from the closing of the private placement (before the exercise of any warrants), combined with current cash, cash equivalents and marketable securities, is expected to fund the Company’s operating and capital expenditures through the first half of 2025.
The securities being sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state, and may not be offered or sold in
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
About Wnt Signaling
Wnt signaling plays key roles in the control of development, homeostasis, and regeneration of many essential organs and tissues, including liver, intestine, lung, kidney, retina, central nervous system, cochlea, bone, and others. Modulation of Wnt signaling pathways has potential for treatment of degenerative diseases and tissue injuries. Surrozen’s platform and proprietary technologies have the potential to overcome the limitations in pursuing the Wnt pathway as a therapeutic strategy.
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Cautionary Statement Regarding Forward Looking Statements
This press release contains certain forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release regarding expected future events including the expected closing of the private placement; the receipt of additional gross proceeds if the accompanying common warrants are exercised in full; the achievement of clinical trial enrollment goals; the Company’s intended use of the proceeds from the private placement; the Company’s expectation that the net proceeds from the closing of the private placement (before the exercise of any warrants), combined with its current cash, cash equivalents and marketable securities, will fund its operating and capital expenditures through the first half of 2025; and the Company’s strategy, future operations, future financial position, projected expenses, expected timing and results of clinical trials, prospects, plans and objectives of management are forward-looking statements. Forward-looking statements generally are accompanied by words such as “will,” “plan,” “intend,” “potential,” “expect,” “could,” or the negative of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of
Investor and Media Contact:
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