Coya Therapeutics Announces $10.0 Million Private Placement

Rhea-AI Summary

Coya Therapeutics (Nasdaq: COYA), a clinical-stage biotechnology company focused on enhancing regulatory T cell function, has announced a $10.0 million private placement. The company will sell 1,379,314 shares of common stock at $7.25 per share to primarily existing institutional stockholders. The offering is expected to close around October 23, 2024, subject to customary conditions.

BTIG, is leading the placement, with Allele Capital Partners, and Chardan Capital Markets as co-placement agents. Coya plans to use the net proceeds for general corporate purposes, including administrative expenses, working capital, and supporting preclinical, clinical, and regulatory activities for their product pipeline.

The securities are being offered privately under Section 4(a)(2) of the Securities Act and Regulation D, and are not registered for public sale. Coya has agreed to file a registration statement with the SEC for resale of these securities within 30 days of the definitive agreements.

Positive

• Secured $10.0 million in private placement funding
• Majority of investors are existing institutional stockholders, indicating confidence in the company
• Funds will support preclinical, clinical, and regulatory activities for product pipeline

Negative

• Potential dilution of existing shareholders due to issuance of new shares
• Securities not registered for public sale, limiting liquidity for investors

Insights

Financial Analyst

Coya Therapeutics' $10 million private placement is a significant capital raise for a company with a market cap of $124.9 million. The 8% dilution at a 7.25% premium to the current share price indicates investor confidence in Coya's pipeline and strategy. The participation of existing institutional investors is particularly noteworthy, suggesting continued support for the company's direction.

The funds will bolster Coya's financial position, extending their runway for preclinical and clinical development of their Treg-enhancing therapies. This cash infusion is important for a clinical-stage biotech, potentially accelerating their R&D efforts and reducing the need for near-term dilutive financing.

However, investors should note the dilutive effect and the 30-day timeline for filing a registration statement, which could lead to some near-term selling pressure once the shares become freely tradable. Overall, this financing strengthens Coya's position but comes with the typical trade-offs of dilution and potential short-term stock volatility.

Biotech Research Analyst

Coya Therapeutics' focus on enhancing regulatory T cell (Treg) function positions them in a promising area of immunology research. Tregs play a important role in maintaining immune homeostasis and tolerance, with potential applications across various autoimmune and inflammatory conditions.

The additional funding will support preclinical, clinical and regulatory activities for their product pipeline. This is critical for a company at Coya's stage, as developing novel biologics and cell therapies is capital-intensive and time-consuming. The investment by existing institutional shareholders suggests confidence in Coya's scientific approach and early-stage results.

However, it's important to note that success in preclinical and early clinical stages doesn't guarantee FDA approval or commercial success. Investors should closely monitor upcoming milestones and data readouts to assess the potential of Coya's Treg-enhancing therapies in addressing unmet medical needs.

Majority of investors in offering are existing institutional stockholders of Coya

HOUSTON--(BUSINESS WIRE)-- Coya Therapeutics, Inc. (Nasdaq:COYA) (“Coya” or the “Company”), a clinical-stage biotechnology company developing biologics and cell therapies intended to enhance the function of regulatory T cells (“Tregs”), announced today that it has entered into definitive securities purchase agreements for the purchase and sale of an aggregate of 1,379,314 shares of its common stock in a private placement at a price of $7.25 per share. The offering is expected to close on or about October 23, 2024, subject to the satisfaction of customary closing conditions. The majority of investors in the offering are existing institutional stockholders of the Company.

BTIG, LLC is acting as the lead placement agent and Allele Capital Partners, LLC, through its executing broker-dealer, Wilmington Capital Securities, LLC, and Chardan Capital Markets LLC are acting as co-placement agents for the offering.

The gross proceeds to the Company from the private placement are expected to be approximately $10.0 million, before deducting the placement agents’ fees and other offering expenses payable by the Company. The Company intends to use the net proceeds for general corporate purposes, including general and administrative expenses, working capital and to support preclinical, clinical and regulatory activities related to the Company’s existing and future product candidate pipeline.

The offer and sale of the securities described above are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and/or Regulation D promulgated thereunder and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities issued in the private placement may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.

The Company has agreed to file a registration statement with the Securities and Exchange Commission (“SEC”) covering the resale of the securities to be issued in the offering no later than 30 days following the date of the definitive agreements and to have the registration statement declared effective no later than 75 days following the date of the definitive agreements in the event of a “full review” by the SEC.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Coya Therapeutics, Inc.

Headquartered in Houston, TX, Coya Therapeutics, Inc. (Nasdaq: COYA) is a clinical-stage biotechnology company developing proprietary treatments focused on the biology and potential therapeutic advantages of regulatory T cells (“Tregs”) to target systemic inflammation and neuroinflammation. Dysfunctional Tregs underlie numerous conditions including neurodegenerative, metabolic, and autoimmune diseases, and this cellular dysfunction may lead to a sustained inflammation and oxidative stress resulting in lack of homeostasis of the immune system.

Forward Looking Statements

This release contains “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are typically preceded by words such as “may,” “can,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “seek,” “estimate,” “continue,” “plan,” “point to,” “project,” “predict,” “could,” “intend,” “target,” “potential,” “will,” or similar words and expressions of the future. These forward-looking statements reflect management’s current knowledge, assumptions, judgment and expectations regarding future performance or events. Although management believes that the expectations reflected in such statements are reasonable, they give no assurance that such expectations will prove to be correct or that those goals will be achieved, and you should be aware that actual results could differ materially from those contained in the forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks associated with market conditions and the satisfaction of customary closing conditions related to the offering and uncertainties related to the offering and the use of proceeds from the offering. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the Company’s business in general, please refer to the Company’s Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarters ended March 31, 2024, and June 30, 2024.

All forward-looking statements are expressly qualified in their entirety by this cautionary notice. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. We have no obligation, and expressly disclaim any obligation, to update, revise or correct any of the forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241022281329/en/

Investor Contact

David Snyder

david@coyatherapeutics.com

CORE IR

Bret Shapiro

brets@coreir.com

561-479-8566

Media Contacts

For Coya Therapeutics:

Kati Waldenburg

media@coyatherapeutics.com

212-655-0924

Source: Coya Therapeutics, Inc.

FAQ

What is the amount of Coya Therapeutics' (COYA) recent private placement?

Coya Therapeutics (COYA) announced a $10.0 million private placement.

At what price per share is Coya Therapeutics (COYA) selling its common stock in the private placement?

Coya Therapeutics (COYA) is selling its common stock at $7.25 per share in the private placement.

When is the expected closing date for Coya Therapeutics' (COYA) private placement?

The private placement for Coya Therapeutics (COYA) is expected to close on or about October 23, 2024, subject to customary closing conditions.

How does Coya Therapeutics (COYA) plan to use the proceeds from the private placement?

Coya Therapeutics (COYA) intends to use the net proceeds for general corporate purposes, including administrative expenses, working capital, and supporting preclinical, clinical, and regulatory activities for their product pipeline.