Matinas BioPharma Announces Agreement for the Acquisition of Preferred Stock and Appointment of Dr. Robin L. Smith to the Board of Directors
Matinas BioPharma (NYSE American: MTNB) has entered into a securities purchase agreement with investors for the sale of 3,300 shares of Series C Convertible Preferred Stock and warrants for $3.3 million in gross proceeds. The transaction includes two closings of $1.65 million each, with the second closing subject to shareholder approval.
The Preferred Stock will be convertible into common stock at $0.586 per share, with each preferred share initially convertible into 1,706 common shares. The warrants have a $0.6446 exercise price and a five-year term. The funds will be used for general corporate purposes, focusing on reducing operating expenses and exploring strategic alternatives for MAT2203, their Phase 3-ready antifungal drug candidate.
Additionally, Dr. Robin L. Smith has been appointed to the Board of Directors, bringing extensive experience in the biopharmaceutical industry, while founding Chairman Herbert J. Conrad has resigned and will retire.
Matinas BioPharma (NYSE American: MTNB) ha stipulato un accordo per l'acquisto di titoli con investitori per la vendita di 3.300 azioni di Azioni Preferenziali Convertibili di Serie C e warrant per 3,3 milioni di dollari in proventi lordi. La transazione prevede due chiusure di 1,65 milioni di dollari ciascuna, con la seconda chiusura soggetta all'approvazione degli azionisti.
Le Azioni Preferenziali saranno convertibili in azioni ordinarie a 0,586 dollari per azione, con ogni azione preferenziale inizialmente convertibile in 1.706 azioni ordinarie. I warrant hanno un prezzo di esercizio di 0,6446 dollari e una durata di cinque anni. I fondi saranno utilizzati per scopi aziendali generali, concentrandosi sulla riduzione delle spese operative ed esplorando alternative strategiche per MAT2203, il loro candidato farmaco antifungino pronto per la fase 3.
Inoltre, il Dr. Robin L. Smith è stato nominato nel Consiglio di Amministrazione, portando una vasta esperienza nell'industria biopharmaceutica, mentre il presidente fondatore Herbert J. Conrad si è dimesso e andrà in pensione.
Matinas BioPharma (NYSE American: MTNB) ha firmado un acuerdo de compra de valores con inversores para la venta de 3,300 acciones de Acciones Preferentes Convertibles Serie C y warrants por 3.3 millones de dólares en ingresos brutos. La transacción incluye dos cierres de 1.65 millones de dólares cada uno, siendo el segundo cierre sujeto a la aprobación de los accionistas.
Las Acciones Preferentes serán convertibles en acciones ordinarias a 0.586 dólares por acción, con cada acción preferente inicialmente convertible en 1,706 acciones ordinarias. Los warrants tienen un precio de ejercicio de 0.6446 dólares y un plazo de cinco años. Los fondos se utilizarán para fines corporativos generales, centrándose en reducir los gastos operativos y explorar alternativas estratégicas para MAT2203, su candidato a fármaco antifúngico listo para la fase 3.
Además, el Dr. Robin L. Smith ha sido nombrado en la Junta Directiva, aportando una amplia experiencia en la industria biofarmacéutica, mientras que el presidente fundador Herbert J. Conrad ha renunciado y se retirará.
Matinas BioPharma (NYSE American: MTNB)는 투자자들과 증권 구매 계약을 체결하여 3,300주 분량의 C형 전환우선주 및 330만 달러의 총 수익을 위한 워런트를 판매합니다. 이 거래는 각각 165만 달러의 두 차례 마감으로 구성되며, 두 번째 마감은 주주 승인에 따라 달라집니다.
우선주는 주당 0.586달러에 보통주로 전환할 수 있으며, 각 우선주는 초기적으로 1,706주의 보통주로 전환됩니다. 워런트의 행사가격은 0.6446달러이며, 유효 기간은 5년입니다. 자금은 일반 기업 용도로 사용되며, 운영 비용 절감 및 MAT2203의 전략적 대안 탐색에 집중할 것입니다. MAT2203은 3상 준비가 완료된 항진균제 후보입니다.
또한, Dr. Robin L. Smith가 이사회에 임명되어 생명공학 산업에서의 광범위한 경험을 가져오며, 창립 의장인 Herbert J. Conrad는 사임하고 은퇴할 예정입니다.
Matinas BioPharma (NYSE American: MTNB) a conclu un accord d'achat de titres avec des investisseurs pour la vente de 3 300 actions de Série C d'actions privilégiées convertibles et de bons de souscription pour un montant brut de 3,3 millions de dollars. La transaction comprend deux clôtures de 1,65 million de dollars chacune, la deuxième clôture étant soumise à l'approbation des actionnaires.
Les actions privilégiées seront convertibles en actions ordinaires au prix de 0,586 dollars par action, chaque action privilégiée étant initialement convertible en 1 706 actions ordinaires. Les bons de souscription ont un prix d'exercice de 0,6446 dollars et une durée de cinq ans. Les fonds seront utilisés à des fins générales de l'entreprise, en se concentrant sur la réduction des dépenses d'exploitation et l'exploration d'alternatives stratégiques pour MAT2203, leur candidat médicament antifongique prêt pour la phase 3.
De plus, le Dr Robin L. Smith a été nommé au conseil d'administration, apportant une vaste expérience dans l'industrie biopharmaceutique, tandis que le président fondateur Herbert J. Conrad a démissionné et prendra sa retraite.
Matinas BioPharma (NYSE American: MTNB) hat eine Wertpapierkaufvereinbarung mit Investoren über den Verkauf von 3.300 Aktien der Serie C Vorzugsaktien und Warrants im Wert von 3,3 Millionen Dollar in brutto Erlösen abgeschlossen. Die Transaktion umfasst zwei Abschlüsse von jeweils 1,65 Millionen Dollar, wobei der zweite Abschluss der Zustimmung der Aktionäre unterliegt.
Die Vorzugsaktien können zu einem Preis von 0,586 Dollar pro Aktie in Stammaktien umgewandelt werden, wobei jede Vorzugsaktie zunächst in 1.706 Stammaktien umwandelbar ist. Die Warrants haben einen Ausübungspreis von 0,6446 Dollar und eine Laufzeit von fünf Jahren. Die Mittel werden für allgemeine Unternehmenszwecke verwendet, wobei der Schwerpunkt auf der Reduzierung der Betriebskosten und der Erkundung strategischer Alternativen für MAT2203, ihren Kandidaten für ein antimykotisches Medikament, das bereit für die Phase 3 ist, liegt.
Darüber hinaus wurde Dr. Robin L. Smith in den Vorstand berufen und bringt umfangreiche Erfahrung in der biopharmazeutischen Industrie mit, während der Gründungspräsident Herbert J. Conrad zurückgetreten ist und in den Ruhestand gehen wird.
- Secured $3.3 million in new funding through preferred stock and warrants
- Appointment of experienced biopharmaceutical executive Dr. Robin L. Smith to Board of Directors
- Company maintains Phase 3-ready antifungal drug candidate MAT2203 in pipeline
- Need for shareholder approval to secure second half of funding ($1.65M)
- Potential significant dilution from preferred stock conversion and warrant exercise
- Company actively reducing operating costs, indicating financial constraints
- Exploring strategic alternatives suggests potential business challenges
Insights
This
The financing terms warrant careful analysis: The conversion price of
The simultaneous board changes are particularly telling. Dr. Robin Smith's appointment, with her extensive experience in cell therapy and business development, combined with the stated focus on "strategic alternatives," suggests a possible pivot in corporate strategy. Her background in successfully executing business transformations, particularly at Neostem, could be instrumental in repositioning Matinas.
The emphasis on cost reduction while exploring strategic alternatives for MAT2203 indicates a shift from pure drug development to a more flexible approach. This could range from seeking partnerships to potential asset sales. The company's explicit mention of "other strategic alternatives" in the context of corporate strategy signals a broader strategic review that could include M&A scenarios.
The financing's structure, requiring shareholder approval for the second tranche, creates both opportunity and risk. While it provides a pathway to additional capital, it also introduces uncertainty about the full funding being secured. This approach suggests careful cash management will be important in the near term as the company navigates its strategic review process.
BEDMINSTER, N.J., Feb. 13, 2025 (GLOBE NEWSWIRE) -- Matinas BioPharma Holdings, Inc. (NYSE American: MTNB) (the “Company”) today announced that the Company entered into a securities purchase agreement (the “Agreement”) with a certain group of investors (the “Investors”), pursuant to which they agreed to purchase from the Company 3,300 shares of Series C Convertible Preferred Stock (the “Preferred Stock”) and warrants to purchase up to 11,262,808 shares of common stock at a purchase price of
The Investors purchased 1,650 shares of Preferred Stock and accompanying warrants to purchase up to 5,631,404 shares of common stock for gross proceeds to the Company of
The shares of Preferred Stock will be convertible into common stock at a conversion price of
The funds will be used for general corporate purposes, with a focus on reducing operating expenses and exploring strategic alternatives for MAT2203, the Company’s Phase 3-ready antifungal drug candidate for the treatment of invasive fungal infections, as well as other strategic alternatives for the Company.
In connection with the Agreement, Dr. Robin L. Smith, MD, MBA has been appointed to the Board of Directors. Dr. Smith is a global business leader, medical doctor, author and entrepreneur who has held various C-Suite and board positions in the biopharmaceutical industry. She currently serves on the boards of directors of Spiritus Therapeutics, which she co-founded, the International Board of Sanford Health, and is the Chairman, President and founder of the Cura Foundation, a nonsectarian public charity dedicated to improving human health and well-being and increasing quality of life globally.
Dr. Smith has also had extensive experience serving on multiple private and public companies boards of directors and board committees, including audit, nominating, governance, compensation and science and technology committees in healthcare services, biotechnology, AI, technology and consumer products. Dr. Smith also founded numerous companies in regenerative medicine and is a managing partner of BRM Holdings family office. From 2006 until 2015, Dr. Smith was chairman and chief executive officer of Neostem, Inc., where she pioneered the company’s innovative business model, combining proprietary cell therapy development with successful contract development and manufacturing organization.
Dr. Smith has been recognized for her extensive leadership in the biopharmaceutical industry, winning an array of industry awards and business recognitions. She received the Regenerative Medicine Foundation (RMF) 2019 Stem Cell and Regenerative Medicine Action Award for International Diplomacy, the 2018 HEALinc Future Health Humanitarian Award, the Business Intelligence Group’s Woman of the Year Award in 2018 and the 2018 Gold Stevie® Award for Woman of the Year (Government or Non-Profit). In April 2016, Pope Francis awarded Dr. Smith Dame Commander with Star Pontifical Equestrian Order of Saint Sylvester Pope and Martyr and was awarded the Lifetime Achievement in Healthcare and Science by The National Museum of Catholic Art and Library.
She received her B.A. degree from Yale University and her M.D. degree from the Yale School of Medicine. Dr. Smith holds an M.B.A. degree from the Wharton School of Business and completed the Stanford University Directors Program and received an honorary Doctor of Science degree from Thomas Jefferson Medical College.
The Company also announced that Herbert J. Conrad, founding Chairman of Matinas, has resigned from the Board and will retire. The Company wishes to express its sincere gratitude to Mr. Conrad for his long and dedicated service and support of the Company.
“We are very excited to have Robin join our Board,” commented Jerome D. Jabbour, Chief Executive Officer of Matinas. “She brings deep medical and business knowledge and experience at a critical time for our Company. I believe Dr. Smith will be an invaluable addition to our Board and can be a great contributor as we move forward. I would also like to personally thank Herb Conrad for his unwavering commitment and contributions to Matinas since we began our journey together in 2012. Herb was the first investor in the Company and provided incredible leadership throughout his years on the Board. We wish Herb all the best in his retirement.”
The Board has directed management to continue to reduce operating costs while strategic alternatives are being explored. There can be no assurance that the exploration of strategic alternatives will result in any agreement or transaction, or as to the timing of any such agreement or transaction. Further, there can be no assurance that the Company will receive Stockholder Approval or that the second closing will occur.
About Matinas BioPharma
Matinas BioPharma is a biopharmaceutical company focused on delivering groundbreaking therapies using its lipid nanocrystal (LNC) platform delivery technology.
About MAT2203
Matinas BioPharma’s MAT2203 is a potential oral broad-spectrum treatment for invasive deadly fungal infections. Although amphotericin B is a fungicidal agent, it is currently only available through an intravenous route of administration, which is known to be associated with several significant safety issues such as renal toxicity and anemia due to very high circulating levels of amphotericin B. MAT2203 has the potential to overcome the significant limitations of the currently available amphotericin B products due to its targeted oral delivery. Combining comparable fungicidal activity with targeted delivery results in a lower risk of toxicity and potentially creates the ideal antifungal agent for the treatment of invasive fungal infections. MAT2203 was successfully evaluated in the completed Phase 2 EnACT study in HIV patients suffering from cryptococcal meningitis, meeting its primary endpoint and achieving robust survival. MAT2203 was planned to be further evaluated in a single Phase 3 registration trial as an oral step-down monotherapy following treatment with AmBisome (liposomal amphotericin B) compared with the standard of care in patients with invasive aspergillosis who have limited treatment options.
For more information, please visit www.matinasbiopharma.com.
Forward-looking Statements
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including those relating to compliance with NYSE American listing requirements, and other statements that are predictive in nature, that depend upon or refer to future events or conditions. All statements other than statements of historical fact are statements that could be forward-looking statements. Forward-looking statements include words such as "expects," "anticipates," "intends," "plans," "could," "believes," "estimates" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, the satisfaction of closing conditions related to the second closing of the offering; the intended use of proceeds from the offering; the receipt of the Shareholder Approval; the sale of MAT 2203, and the evaluation of other alternatives for the Company, including a winddown or dissolution of the Company; and the other factors listed under "Risk Factors" in our filings with the SEC, including Forms 10-K, 10-Q and 8-K. Investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this release. Except as may be required by law, the Company does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Matinas BioPharma’s product candidates are all in a development stage and are not available for sale or use.
FAQ
How much funding did Matinas BioPharma (MTNB) secure in February 2024?
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What are the terms of the warrants issued by MTNB in February 2024?
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