VYNE Therapeutics, a clinical-stage biopharmaceutical company specializing in innovative therapies for immuno-inflammatory conditions, has announced that it has finalized a securities purchase agreement with select healthcare-focused institutional investors, paving the way for a private placement financing (PIPE) anticipated to yield gross proceeds of $88 million. This figure is stated prior to accounting for placement agent fees and associated offering expenses.
The market’s response to this development was immediate, with VYNE Therapeutics’ stock experiencing a notable surge in value.
At the time of this publication, Vyne Therapeutics Inc stock (VYNE) has witnessed a surge.
Vyne Therapeutics Inc
Current Price: $2.77
Change : +0.53
Change (%): (23.39%)
Volume: 16.2M
Source: Tomorrow Events Market Data
Access Biotechnology led the PIPE initiative, with notable participation from Eventide Asset Management, Cormorant Asset Management, Acorn Bioventures, Parkman Healthcare Partners, Surveyor Capital (a Citadel company), Soleus Capital, Palo Alto Investors LP, and other undisclosed investors.
David Domzalski, President and Chief Executive Officer of VYNE, expressed enthusiasm about the transformative financing, stating, “We are proud to partner with leading fundamental healthcare investors in this transformative financing of our company to advance our InhiBET™ platform.” He went on to highlight the positive clinical data from the Phase 1b trial for VYN201, targeting nonsegmental vitiligo. Domzalski anticipates that the net proceeds from this financing will carry them through crucial milestones, including the progression of VYN201 into a Phase 2b clinical trial for vitiligo and Phase 1 trials for VYN202, their BD2-selective BET inhibitor.
In the PIPE agreement, VYNE is offering a total of 10,652,543 shares of its common stock at a unit price of $2.245. Additionally, pre-funded warrants are being provided to specific investors, allowing them to purchase up to 28,614,437 shares of common stock at a rate of $2.2449 per pre-funded warrant. Each warrant comes with an exercise price of $0.0001 per common stock share and can be exercised immediately, remaining valid until fully utilized. The pricing of the PIPE has been structured to meet the Nasdaq listing rules’ “Minimum Price” requirement. The closure of the PIPE is slated for November 1, 2023, contingent upon customary closing conditions.
LifeSci Capital LLC is serving as the exclusive placement agent for the PIPE.
It’s essential to note that the securities set to be offered in the PIPE, encompassing both the common stock shares and the pre-funded warrants, have not undergone registration under the Securities Act of 1933, as amended, or the pertinent state securities laws. Consequently, they may only be offered or sold in the United States in compliance with an effective registration statement or an applicable exemption from the registration prerequisites. As part of the private placement financing agreement, VYNE Therapeutics has committed to submitting a registration statement with the Securities and Exchange Commission within 30 days post-closure. This filing aims to register the resale of the common stock shares and the underlying shares tied to the pre-funded warrants distributed through the PIPE.
