November 25, 2014
By Riley McDermid, BioSpace.com Breaking News Editor
Clinical stage biopharmaceutical company Eleven Biotherapeutics said Tuesday that it has entered into a securities purchase agreement for the sale of $20 million of common stock and warrants in a private placement financing with a group of unnamed investors.
Eleven said it will use the funding to further advance its pipeline of protein therapeutics to treat diseases of the eye. Data from its Phase 3 clinical study of experimental drug EBI-005 in patients with dry eye disease is expected in the second quarter of 2015.
Citigroup Global Markets Inc., Cowen and Company and Leerink Partners acted as bookrunners on the deal.
Under the terms of the placement, Eleven will offer the sale and issuance of 1,743,680 shares of common stock at $11.47 per share, the closing bid price reported by NASDAQ on Nov. 24, 2014, as well as the sale and issuance of warrants to purchase approximately 871,840 shares of common stock at an exercise price of $15 per share.
Eleven said that warrants will expire three years from the date of issuance, with the deal slated to close Dec. 1, 2014, “subject to the satisfaction of certain customary closing conditions.”
“We believe this financing provides additional resources for the development of EBI-005 for treatment of moderate to severe dry eye disease and moderate to severe allergic conjunctivitis,” said Abbie Celniker, Eleven’s president and chief executive officer. “We also look forward to advancing EBI-031, our novel IL-6 inhibitor for treatment of back of the eye diseases such as diabetic macular edema and uveitis, toward the clinic.”
“The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and accordingly 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 of the Securities Act and such applicable state securities laws,” said Eleven. It will file with the SEC soon, it said.
