iBio Raises $6.2 Million Through Warrant Inducement Transaction
iBio, an AI-driven innovator of precision antibody therapies, has secured $6.2 million through a warrant inducement transaction with institutional investors. The deal involves existing warrant holders agreeing to purchase 5,626,685 shares of common stock at a reduced price of $1.11 per share.
As part of the agreement, investors received new warrants to purchase up to 11,253,370 shares at $0.86 per share, with a five-year expiration period. The transaction is expected to close around April 30, 2025, with Chardan serving as the exclusive financial advisor.
The company plans to use the net proceeds for working capital and general corporate purposes. The new securities are being offered through a private placement and will require registration with the SEC before they can be sold in the United States.
iBio, innovatore nell'ambito delle terapie con anticorpi di precisione guidate dall'intelligenza artificiale, ha ottenuto 6,2 milioni di dollari tramite una transazione di incentivo di warrant con investitori istituzionali. L'accordo prevede che i detentori di warrant esistenti acquistino 5.626.685 azioni ordinarie a un prezzo scontato di 1,11 dollari per azione.
Come parte dell'intesa, gli investitori hanno ricevuto nuovi warrant per acquistare fino a 11.253.370 azioni a 0,86 dollari per azione, con una scadenza di cinque anni. La transazione è prevista per la chiusura intorno al 30 aprile 2025, con Chardan come consulente finanziario esclusivo.
L'azienda intende utilizzare i proventi netti per il capitale circolante e scopi aziendali generali. I nuovi titoli vengono offerti tramite collocamento privato e dovranno essere registrati presso la SEC prima di poter essere venduti negli Stati Uniti.
iBio, innovador en terapias de anticuerpos de precisión impulsadas por IA, ha asegurado 6,2 millones de dólares mediante una transacción de incentivo de warrants con inversores institucionales. El acuerdo implica que los titulares actuales de warrants compren 5.626.685 acciones comunes a un precio reducido de 1,11 dólares por acción.
Como parte del acuerdo, los inversores recibieron nuevos warrants para comprar hasta 11.253.370 acciones a 0,86 dólares por acción, con un período de vencimiento de cinco años. Se espera que la transacción se cierre alrededor del 30 de abril de 2025, con Chardan como asesor financiero exclusivo.
La compañía planea usar los ingresos netos para capital de trabajo y propósitos corporativos generales. Los nuevos valores se ofrecen mediante una colocación privada y deberán registrarse ante la SEC antes de poder venderse en Estados Unidos.
iBio는 AI 기반 정밀 항체 치료제 혁신 기업으로서 기관 투자자들과의 워런트 유도 거래를 통해 620만 달러를 확보했습니다. 이번 거래는 기존 워런트 보유자들이 할인된 가격인 주당 1.11달러에 보통주 5,626,685주를 매입하는 내용을 포함합니다.
계약의 일환으로 투자자들은 주당 0.86달러에 최대 11,253,370주를 매수할 수 있는 신규 워런트를 받았으며, 만료 기간은 5년입니다. 거래는 2025년 4월 30일경 마무리될 예정이며, Chardan이 독점 재무 자문을 맡습니다.
회사는 순수익을 운전자본 및 일반 기업 목적에 사용할 계획입니다. 신규 증권은 사모 방식으로 제공되며, 미국 내 판매 전 SEC 등록이 필요합니다.
iBio, innovateur en thérapies d'anticorps de précision pilotées par l'IA, a obtenu 6,2 millions de dollars grâce à une transaction d'incitation de bons de souscription avec des investisseurs institutionnels. L'accord prévoit que les détenteurs actuels de bons achètent 5 626 685 actions ordinaires à un prix réduit de 1,11 dollar par action.
Dans le cadre de cet accord, les investisseurs ont reçu de nouveaux bons leur permettant d'acheter jusqu'à 11 253 370 actions à 0,86 dollar par action, avec une échéance de cinq ans. La transaction devrait se clôturer autour du 30 avril 2025, Chardan agissant en tant que conseiller financier exclusif.
La société prévoit d'utiliser les produits nets pour le fonds de roulement et des fins générales d'entreprise. Les nouveaux titres sont proposés par placement privé et devront être enregistrés auprès de la SEC avant leur vente aux États-Unis.
iBio, ein KI-gesteuerter Innovator für präzise Antikörpertherapien, hat durch eine Warrant-Anreiztransaktion mit institutionellen Investoren 6,2 Millionen US-Dollar gesichert. Der Deal sieht vor, dass bestehende Warrant-Inhaber 5.626.685 Stammaktien zu einem reduzierten Preis von 1,11 US-Dollar pro Aktie erwerben.
Im Rahmen der Vereinbarung erhielten die Investoren neue Warrants zum Kauf von bis zu 11.253.370 Aktien zu 0,86 US-Dollar pro Aktie mit einer Laufzeit von fünf Jahren. Der Abschluss der Transaktion wird voraussichtlich um den 30. April 2025 erfolgen, wobei Chardan als exklusiver Finanzberater fungiert.
Das Unternehmen plant, die Nettoerlöse für das Betriebskapital und allgemeine Unternehmenszwecke zu verwenden. Die neuen Wertpapiere werden im Rahmen einer Privatplatzierung angeboten und müssen vor dem Verkauf in den USA bei der SEC registriert werden.
- Secured $6.2M in immediate funding through warrant exercise
- Chardan's involvement as financial advisor adds credibility to the transaction
- Dilutive impact from issuing 5.6M new shares at discounted price of $1.11
- Additional dilution potential from 11.2M new warrants at even lower price of $0.86
- Reduced warrant exercise price indicates potential desperation for funding
Insights
iBio's $6.2M warrant exercise provides immediate capital but creates significant future dilution potential through new warrants at lower prices.
iBio has secured approximately
The transaction's structure reveals important elements about the company's financing approach. In exchange for exercising existing warrants, investors received new warrants to purchase 11,253,370 shares (double the number exercised) at
If all new warrants are eventually exercised, they would generate approximately
The involvement of Chardan as financial advisor suggests professional guidance in structuring this transaction. The closing, expected around April 30, 2025, includes the required registration rights for shares issuable upon exercise of the new warrants, which provides some liquidity assurance for the warrant holders.
iBio's $6.2M warrant financing provides needed capital for AI antibody development but creates substantial future dilution risk.
This warrant exercise agreement represents a double-edged financing solution for iBio, an AI-driven innovator in the competitive precision antibody therapeutics space. The
The transaction's structure reflects financing patterns common among development-stage biotech companies. By incentivizing existing warrant holders to exercise at
For context, antibody therapeutics development requires significant capital investment across discovery, optimization, manufacturing process development, and clinical testing phases. The stated use of proceeds for "working capital and general corporate purposes" suggests these funds will support ongoing operations across their AI-driven platform rather than a specific development milestone.
The registration rights granted to new warrant holders indicates iBio is maintaining appropriate liquidity options for investors, which is essential for attracting and retaining institutional capital in the biotech sector. This balanced approach to capital formation allows continued advancement of their precision antibody platform while managing immediate funding requirements.
SAN DIEGO, April 29, 2025 (GLOBE NEWSWIRE) -- iBio, Inc. (Nasdaq: IBIO) (“iBio” or the “Company”), an AI-driven innovator of precision antibody therapies, announces today announced that it has entered into an agreement with institutional investors that are existing holders of warrants to purchase shares of common stock of the Company for cash (the “Existing Warrants”), wherein the investors agreed to exercise the Existing Warrants to purchase 5,626,685 shares of common stock at a reduced exercise price of
In consideration for the exercise of the Existing Warrants for cash, the investors received new warrants (the “New Warrants”) to purchase up to an aggregate of 11,253,370 shares of common stock. The New Warrants are exercisable at
Chardan acted as the exclusive financial advisor in connection with the transaction.
The securities in this private placement have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, and 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. iBio granted registration rights to the purchasers of the New Warrants, and has agreed to file a registration statement with the Securities and Exchange Commission registering the shares of common stock issuable upon exercise of the New Warrants.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About iBio, Inc.
iBio (Nasdaq: IBIO) is a cutting-edge biotech company leveraging AI and advanced computational biology to develop next-generation biopharmaceuticals for cardiometabolic diseases, obesity, cancer and other hard-to-treat diseases. By combining proprietary 3D modeling with innovative drug discovery platforms, iBio is creating a pipeline of breakthrough antibody treatments to address significant unmet medical needs. Our mission is to transform drug discovery, accelerate development timelines, and unlock new possibilities in precision medicine. For more information, visit www.ibioinc.com or follow us on LinkedIn.
Forward-Looking Statements
Any statements contained in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include statements regarding the intended use of proceeds, the expected gross proceeds from the offering and the expected closing of the offering. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and the completion of the offering on the anticipated terms or at all, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, and the Company’s subsequent filings with the SEC, including subsequent periodic reports on Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statements contained in this press release speak only as of the date hereof and, except as required by federal securities laws, iBio, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Corporate Contact:
iBio, Inc.
Investor Relations
ir@ibioinc.com
Media Contacts:
Ignacio Guerrero-Ros, Ph.D., or David Schull
Russo Partners, LLC
Ignacio.guerrero-ros@russopartnersllc.com
David.schull@russopartnersllc.com
(858) 717-2310 or (646) 942-5604
FAQ
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