Tharimmune Announces $2.02 Million Private Placement to Advance Development Programs

Rhea-AI Summary

Tharimmune (NASDAQ:THAR) has secured a $2.02 million private placement through a securities purchase agreement. The deal includes issuing 961,446 shares of common stock at $2.10 per share, along with warrants to purchase up to 480,723 additional shares at $2.031 per share. The warrants will be exercisable after six months and expire in 5.5 years.

The financing was led by Gravitas Capital and SDS Capital Group, with President Street Global serving as the exclusive placement agent. The net proceeds will support clinical development, particularly the TH104 program targeting chronic pruritus in primary biliary cholangitis (PBC), and general working capital. The transaction is expected to close around December 9, 2024.

Positive

• Secured $2.02 million in new funding
• Strategic investment from biotechnology-focused investors
• Funds allocated to advance clinical development of TH104 program

Negative

• Potential dilution for existing shareholders through new share issuance
• Additional dilution possible through warrant exercise
• Securities not immediately tradeable due to registration requirements

Insights

Financial Analyst

The $2.02 million private placement, while providing needed capital, represents a relatively modest raise for a clinical-stage biotech company. The deal structure at $2.10 per share with warrants at $2.031 suggests significant dilution potential, especially considering the company's small $3 million market cap. The participation of Gravitas Capital and SDS Capital Group adds credibility, but the warrant terms, exercisable after six months, could create selling pressure. The focus on TH104 for chronic pruritus in PBC represents a niche market opportunity, though the funding may only support minimal clinical development progress. This financing appears more like a bridge than a substantial catalyst for program advancement.

Medical Research Analyst

The funding allocation towards TH104's development program for chronic pruritus in primary biliary cholangitis (PBC) targets an underserved market. PBC affects primarily women and has treatment options for associated pruritus, which significantly impacts quality of life. However, the $2.02 million raise, after deducting expenses, provides minimal runway for meaningful clinical development in this space, where trials typically require substantial capital. The company will likely need additional financing rounds to achieve significant clinical milestones. The involvement of biotech-focused investors suggests some confidence in the therapeutic approach, but the modest size of the investment indicates cautious optimism rather than strong conviction.

BRIDGEWATER, NEW JERSEY / ACCESSWIRE / December 6, 2024 / Tharimmune, Inc. (Nasdaq:THAR) ("Tharimmune" or the "Company"), a clinical-stage biotechnology company committed to pioneering therapies in immunology and inflammation, today announced it has entered into a securities purchase agreement to raise gross proceeds of approximately $2.02 million through a private placement.

The agreement includes the issuance of 961,446 shares of common stock (or common stock equivalents) and warrants to purchase up to an additional 480,723 shares of common stock. Each share (or common stock equivalent) is priced at $2.10 and is accompanied by a warrant. The warrants will have an exercise price of $2.031 per share, becoming exercisable six months after issuance and expiring five and one-half years from the date of issuance. The closing of this transaction is expected on or about December 9, 2024, subject to customary closing conditions.

Strategic Investors and Placement Details

The financing was led by Gravitas Capital and SDS Capital Group, alongside other biotechnology-focused private investors. President Street Global served as the exclusive placement agent for the offering, ensuring seamless execution of the transaction.

After deducting placement agent fees and other offering-related expenses, the Company intends to allocate the net proceeds toward clinical development, including advancing its flagship TH104 development program, as well as general working capital.

Advancing Innovation in Biotechnology

This financing reinforces Tharimmune's commitment to advancing its portfolio of therapeutic candidates. TH104, the Company's lead clinical asset, is designed to address chronic pruritus associated with primary biliary cholangitis (PBC), a rare and challenging autoimmune liver disease.

Regulatory Details

The securities in this private placement were offered under Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D thereunder. The shares of common stock and underlying warrants are not registered under the Securities Act or state securities laws. The Company has agreed to file a resale registration statement covering these securities to enable their future trading upon registration or qualification under applicable laws.

About Tharimmune

Tharimmune, Inc. is a clinical-stage biotechnology company focused on developing innovative therapies in immunology, inflammation, and oncology. The Company's lead product candidate, TH104, leverages a unique transdermal buccal film technology designed to address inflammatory conditions, including pruritus associated with PBC. Tharimmune is also advancing TH023, an oral TNF-alpha inhibitor, and exploring novel multi-specific biologics targeting solid tumors. Through a licensing agreement with OmniAb, Inc., the Company harnesses cutting-edge antibody discovery platforms to target specified disease markers. Learn more at www.tharimmune.com.

Forward-Looking Statements

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, contained in this press release, including statements regarding the timing and design of Tharimmune's future Phase 2 trial, Tharimmune's strategy, future operations, future financial position, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "depends," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "target," "should," "will," "would," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company may not actually achieve the plans, intentions, or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements. Factors that may cause such differences, include, but are not limited to, those discussed under Risk Factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2023 and other periodic reports filed by the Company from time to time with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's views as of the date of this release. Subsequent events and developments may cause the Company's views to change; however, the Company does not undertake and specifically disclaims any obligation to update or revise any forward-looking statements to reflect new information, future events or circumstances or to reflect the occurrences of unanticipated events, except as may be required by applicable law. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this release.

Contact Information

Tharimmune, Inc.
ir@tharimmune.com

Alliance Advisors IR
Tirth T. Patel
tpatel@allianceadvisors.com
212-201-6614

SOURCE: Tharimmune, Inc.

View the original press release on accesswire.com

FAQ

How much did Tharimmune (THAR) raise in their December 2024 private placement?

Tharimmune raised gross proceeds of approximately $2.02 million through a private placement announced on December 6, 2024.

What is the share price and warrant structure in Tharimmune's (THAR) December 2024 private placement?

The shares were priced at $2.10 with accompanying warrants exercisable at $2.031 per share. The warrants become exercisable after six months and expire in 5.5 years.

What will Tharimmune (THAR) use the December 2024 private placement proceeds for?

The net proceeds will be used for clinical development, particularly advancing the TH104 development program, and general working capital.