HENDERSON, Nev. - Zura Bio Limited (NASDAQ:ZURA), a clinical-stage immunology company focused on developing therapies for autoimmune and inflammatory diseases, announced a private placement expected to generate approximately $112.5 million. The transaction is led by Access Biotechnology and a prominent life sciences institutional investor, with participation from a mix of new and existing investors.
The company plans to issue around 20.1 million Class A ordinary shares at $3.108 each and pre-funded warrants to purchase up to 16.1 million Class A ordinary shares at $3.107 per warrant. These warrants are immediately exercisable at $0.001 per ordinary share and remain so until exercised in full. The placement aligns with Nasdaq's Minimum Price rule and is set to close on April 22, 2024, pending standard closing conditions.
Proceeds from the placement are earmarked for the accelerated development of Zura Bio's lead candidate, tibulizumab (ZB-106), including a planned Phase 2 clinical trial for systemic sclerosis and a Phase 2 trial for hidradenitis suppurativa, among other corporate purposes. The company anticipates that the net proceeds, combined with current cash reserves, will fund its operations through 2027.
Piper Sandler, Guggenheim Securities, and Cantor are serving as the lead placement agents for this private placement. The securities offered have not been registered under the Securities Act of 1933 and are subject to restrictions on their sale in the United States. Zura Bio has committed to filing a resale registration statement with the U.S. Securities and Exchange Commission for the resale of the shares and underlying shares of the pre-funded warrants.
Zura Bio is developing a portfolio of drug candidates, including ZB-106, ZB-168, and torudokimab (ZB-880), aiming to demonstrate their efficacy and safety in a variety of autoimmune and inflammatory conditions.
This press release contains forward-looking statements.
InvestingPro Insights
As Zura Bio Limited (NASDAQ:ZURA) embarks on its latest fundraising venture through a private placement, the company's financial health and market performance become focal points for investors. With a market capitalization of $136.45 million, Zura Bio is navigating the biotechnology sector's volatile terrain. The company's strategic move to bolster its cash reserves aligns with an InvestingPro Tip highlighting that Zura Bio holds more cash than debt on its balance sheet, a positive signal for investors concerned with financial stability.
Moreover, Zura Bio's recent performance has seen a significant return over the last week, with a 9.06% price total return, pointing towards a surge in investor confidence. However, it's important to note that the company's share price is currently at 22.36% of its 52-week high, reflecting the broader challenges faced in the market and the potential for growth.
Despite these positive signs, Zura Bio's financial metrics suggest areas for investor caution. The company's P/E Ratio stands at -1.60, and it has not been profitable over the last twelve months. Additionally, with an adjusted operating income of -$62.64 million, it is clear that Zura Bio is in a critical phase of investing in its future growth, as reflected in its clinical development plans.
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