Beyond Air Announces $20.6 Million Private Placement Offering Priced At-the-Market Under Nasdaq Rules
Beyond Air (NASDAQ: XAIR) has announced a $20.6 million private placement offering priced at-the-market under Nasdaq rules. The company is selling 40,392,155 shares of common stock (or pre-funded warrants) and accompanying warrants at $0.51 per share. This financing is expected to provide sufficient cash runway through June 2026.
Additionally, Beyond Air is retiring $17.5 million in Avenue Capital debt, aided by $11.5 million in new debt from an insider-led group. This eliminates $12 million in scheduled debt payments through June 2026. The company has also entered into an $11.5 million royalty funding agreement based on net sales of LungFit PH.
The private placement is expected to close around September 30, 2024, subject to certain conditions. BTIG, acted as the lead placement agent, with Laidlaw & Company, JonesTrading, and Brookline Capital Markets as co-placement agents.
Beyond Air (NASDAQ: XAIR) ha annunciato un'offerta di collocamento privato di 20,6 milioni di dollari, prezzata secondo le regole di Nasdaq. L'azienda sta vendendo 40.392.155 azioni di capitale comune (o warrant prefinanziati) e warrant associati a 0,51 dollari per azione. Questo finanziamento dovrebbe garantire una sufficiente liquidità fino a giugno 2026.
Inoltre, Beyond Air sta estinguendo 17,5 milioni di dollari di debito verso Avenue Capital, grazie a 11,5 milioni di dollari di nuovo debito proveniente da un gruppo diretto da insider. Questo elimina 12 milioni di dollari di pagamenti di debito programmati fino a giugno 2026. L'azienda ha anche firmato un accordo di finanziamento royalty di 11,5 milioni di dollari basato sulle vendite nette di LungFit PH.
Si prevede che il collocamento privato si chiuda intorno al 30 settembre 2024, soggetto a determinate condizioni. BTIG ha agito come agente principale per il collocamento, con Laidlaw & Company, JonesTrading e Brookline Capital Markets come co-agenti.
Beyond Air (NASDAQ: XAIR) ha anunciado una oferta de colocación privada de 20.6 millones de dólares, fijada de acuerdo a las normas de Nasdaq. La compañía está vendiendo 40,392,155 acciones de capital común (o garantías prefinanciadas) y garantías acompañantes a 0.51 dólares por acción. Este financiamiento se espera que proporcione suficiente liquidez hasta junio de 2026.
Además, Beyond Air está retirando 17.5 millones de dólares en deuda de Avenue Capital, ayudada por 11.5 millones de dólares en nueva deuda de un grupo liderado por personas internas. Esto elimina 12 millones de dólares en pagos de deuda programados hasta junio de 2026. La compañía también ha firmado un acuerdo de financiamiento mediante regalías de 11.5 millones de dólares basado en ventas netas de LungFit PH.
Se espera que la colocación privada se concrete alrededor del 30 de septiembre de 2024, sujeto a ciertas condiciones. BTIG actúo como agente principal de colocación, con Laidlaw & Company, JonesTrading y Brookline Capital Markets como co-agentes.
비욘드 에어 (NASDAQ: XAIR)는 나스닥 규정에 따라 시장 가격으로 책정된 2천6백만 달러의 사모 배정 공모를 발표했습니다. 회사는 40,392,155주의 보통주 (또는 선자금 보증서) 및 이에 수반되는 보증서를 주당 0.51달러에 판매하고 있습니다. 이 자금 조달은 2026년 6월까지 충분한 현금을 제공할 것으로 예상됩니다.
또한 비욘드 에어는 1천7백5십만 달러의 아베뉴 캐피탈 부채를 정리하고 있으며, 내부인이 이끄는 그룹의 1천1백5십만 달러의 새로운 부채로 지원받고 있습니다. 이는 2026년 6월까지 예정된 1천2백만 달러의 부채 상환을 제거합니다. 회사는 LungFit PH의 순판매에 기반한 1천1백5십만 달러의 로열티 자금 지원 계약도 체결했습니다.
사모 배정은 2024년 9월 30일경에 마감될 것으로 예상되며, 특정 조건에 따라 다릅니다. BTIG는 주요 배치 에이전트로 활동했으며, Laidlaw & Company, JonesTrading 및 Brookline Capital Markets가 공동 배치 에이전트로 있습니다.
Beyond Air (NASDAQ: XAIR) a annoncé une offre de placement privé de 20,6 millions de dollars, fixée au prix du marché selon les règles de Nasdaq. L'entreprise vend 40 392 155 actions ordinaires (ou warrants préfinancés) et des warrants associés à 0,51 dollar par action. Ce financement devrait permettre d'assurer une liquidité suffisante jusqu'en juin 2026.
De plus, Beyond Air va rembourser 17,5 millions de dollars de dettes envers Avenue Capital, aidée par 11,5 millions de dollars de nouvelles dettes provenant d'un groupe dirigé par des initiés. Cela élimine 12 millions de dollars de paiements d'intérêts programmés jusqu'en juin 2026. L'entreprise a également conclu un accord de financement par redevances de 11,5 millions de dollars basé sur les ventes nettes de LungFit PH.
Le placement privé devrait se clôturer aux alentours du 30 septembre 2024, sous réserve de certaines conditions. BTIG a agi en tant qu'agent principal de placement, avec Laidlaw & Company, JonesTrading et Brookline Capital Markets comme co-agents.
Beyond Air (NASDAQ: XAIR) hat eine Privatplatzierung von 20,6 Millionen Dollar angekündigt, die gemäß den Nasdaq-Regeln zum Marktpreis angeboten wird. Das Unternehmen verkauft 40.392.155 Stammaktien (oder vorfinanzierte Warrants) und begleitende Warrants zu je 0,51 Dollar pro Aktie. Diese Finanzierung wird erwartet, um bis Juni 2026 ausreichende Liquidität zu gewährleisten.
Darüber hinaus tilgt Beyond Air 17,5 Millionen Dollar Schulden bei Avenue Capital, unterstützt durch 11,5 Millionen Dollar neue Schulden eines von Insidern geleiteten Gruppen. Dies eliminiert 12 Millionen Dollar fällige Schuldenzahlungen bis Juni 2026. Das Unternehmen hat außerdem eine $11,5 Million Royalties-Finanzierungsvereinbarung basierend auf Nettoverkäufen von LungFit PH abgeschlossen.
Die Privatplatzierung soll voraussichtlich um den 30. September 2024 abgeschlossen werden, vorbehaltlich bestimmter Bedingungen. BTIG fungierte als Hauptplatzierungsagent, während Laidlaw & Company, JonesTrading und Brookline Capital Markets Co-Placement-Agenten waren.
- Raised $20.6 million through private placement offering
- Extended cash runway through June 2026
- Eliminated $12 million in scheduled debt payments through June 2026
- Secured $11.5 million royalty funding agreement based on LungFit PH sales
- Attracted healthcare-focused institutional funds as new investment partners
- Issued 40,392,155 new shares, potentially diluting existing shareholders
- Took on new $11.5 million debt with 15% PIK interest rate
- Royalty payments of 8% on LungFit PH sales starting July 2026
Insights
This financing deal significantly improves Beyond Air's financial position. The
The transaction extends the cash runway to June 2026, giving Beyond Air ample time to focus on commercializing LungFit PH. The participation of healthcare-focused funds and insiders signals confidence in the company's prospects. However, the equity offering at
While the deal improves near-term liquidity, the new
The financing deal provides Beyond Air with important runway to continue commercialization efforts for LungFit PH, their nitric oxide delivery system. This device, which generates NO from ambient air, represents a potential paradigm shift in treating persistent pulmonary hypertension of the newborn (PPHN).
The extended cash runway through 2026 is particularly important for medical device companies, as market adoption can be slow initially. This timeframe allows Beyond Air to focus on physician education, reimbursement strategies and potentially expanding indications for LungFit PH.
The participation of healthcare-focused funds suggests growing confidence in the technology's potential. However, the royalty agreement tied to LungFit PH sales adds pressure to achieve significant market penetration. The company will need to demonstrate clear clinical benefits and cost-effectiveness to drive adoption in neonatal intensive care units.
While the financing provides stability, Beyond Air must now execute flawlessly on its commercial strategy to justify this deal and achieve profitability before the royalty payments begin in 2026.
– Financing strengthens balance sheet and is expected to provide sufficient cash runway through June 2026 –
– Retiring
– Avenue Capital, current insiders, and select group of healthcare-focused investment funds participated in the equity offering –
GARDEN CITY, N.Y., Sept. 27, 2024 (GLOBE NEWSWIRE) -- Beyond Air, Inc. (NASDAQ: XAIR) (“Beyond Air” or the “Company”), a commercial stage medical device and biopharmaceutical company focused on harnessing the power of endogenous and exogenous nitric oxide (NO) to improve the lives of patients, today announced that it has entered into a securities purchase agreement with certain institutional and accredited investors, as well as Company insiders.
“We have strengthened our balance sheet, eliminated debt payments through mid-2026 and extended our cash runway, all of which allows us to continue the momentum of our recent commercial efforts for LungFit PH. We are extremely pleased to add multiple healthcare-focused institutional funds as investment partners who share our vision for the future for LungFit PH,” commented Steve Lisi, Chairman and Chief Executive Officer of Beyond Air.
Under the terms of the securities purchase agreement, the investors have agreed to purchase in a private placement offering 40,392,155 shares of the Company’s common stock (or pre-funded warrants in lieu thereof) and accompanying warrants to purchase up to 40,392,156 shares of common stock, at a purchase price of
The pre-funded warrants and the warrants will be exercisable upon shareholder approval. The pre-funded warrants will be exercisable at a price of
The gross proceeds to the Company from this offering are expected to be approximately
BTIG, LLC acted as the lead placement agent, and each of Laidlaw & Company (UK) Ltd., JonesTrading Institutional Services LLC and Brookline Capital Markets, a division of Arcadia Securities, LLC acted as co-placement agents for the offering.
Retiring
Beyond Air and Avenue Capital have reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time payment of
The Company entered into a
About the Private Placement Offering
The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
Under an agreement with the investors, the Company is required to file an initial registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock and shares underlying the pre-funded warrants and warrants within 30 calendar days and to use its best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no later than 105 days after today in the event of a “full review” by the Securities and Exchange Commission.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor are there any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Beyond Air®, Inc.
Beyond Air is a commercial stage medical device and biopharmaceutical company dedicated to harnessing the power of endogenous and exogenous nitric oxide (NO) to improve the lives of patients suffering from respiratory illnesses, neurological disorders, and solid tumors. The Company has received FDA approval for its first system, LungFit® PH, for the treatment of term and near-term neonates with hypoxic respiratory failure. Beyond Air is currently advancing its other revolutionary LungFit systems in clinical trials for the treatment of severe lung infections such as viral community-acquired pneumonia (including COVID-19), and nontuberculous mycobacteria (NTM) among others. Also, the Company has also partnered with The Hebrew University of Jerusalem to advance a pre-clinical program dedicated to the treatment of autism spectrum disorder (ASD) and other neurological disorders. Additionally, Beyond Cancer, Ltd., an affiliate of Beyond Air, is investigating ultra-high concentrations of NO with a proprietary delivery system to target certain solid tumors in the pre-clinical setting. For more information, visit www.beyondair.net.
Forward Looking Statements
This press release contains “forward-looking statements” (as defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended). You can identify such forward-looking statements by the words “appears,” “expects,” “plans,” “anticipates,” “believes” “expects,” “intends,” “looks,” “projects,” “goal,” “assumes,” “targets” and similar expressions and/or the use of future tense or conditional constructions (such as “will,” “may,” “could,” “should” and the like) and by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from any future results expressed or implied by the forward-looking statements. These forward-looking statements are only predictions and reflect views as of the date they are made with respect to future events and financial performance. Many factors could cause actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including those related to the completion of the offering, risks related to the ability to raise additional capital; the timing and results of future pre-clinical studies and clinical trials; the potential that regulatory authorities, including the FDA and comparable non-U.S. regulatory authorities, may not grant or may delay approval for our product candidates; the approach to discover and develop novel drugs, which is unproven and may never lead to efficacious or marketable products; the ability to fund and the results of further pre-clinical studies and clinical trials of our product candidates; obtaining, maintaining and protecting intellectual property utilized by products; obtaining regulatory approval for products; competition from others using similar technology and others developing products for similar uses; dependence on collaborators; and other risks, which may, in part, be identified and described in the “Risk Factors” section of Beyond Air’s most recent Annual Report on Form 10-K and other of its filings with the Securities and Exchange Commission, all of which are available on Beyond Air’s website. Beyond Air undertakes no obligation to update, and have no policy of updating or revising, these forward-looking statements, except as required by applicable law.
CONTACTS:
Investor Relations contacts
Corey Davis, Ph.D.
LifeSci Advisors, LLC
Cdavis@lifesciadvisors.com
(212) 915-2577
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