Benzinga - by Vandana Singh, Benzinga Editor.
Monday, Surrozen Inc (NASDAQ:SRZN) entered into a private placement to purchase shares of common stock, pre-funded warrants, and accompanying warrants.
If the warrants to purchase common stock are exercised in full, the private placement would provide approximately $192.5 million in gross proceeds and result in the issuance of approximately 12.2 million shares of common stock.
At the closing, the company will issue 1.09 million shares and pre-funded warrants to purchase 40,000 shares at $15.50 and $15.4999, respectively, for aggregate gross proceeds of approximately $17.5 million, with up to an additional $175 million of proceeds upon the exercise of warrants.
The company will use the proceeds to fund the SZN-043 clinical development program, including expanding the SZN-043 Phase 1b clinical trial for severe alcohol-associated hepatitis to 30 patients and for other general corporate purposes.
The net proceeds from the private placement (before the exercise of any warrants), combined with current cash, cash equivalents, and marketable securities, are expected to fund the company’s operating and capital expenditures through the first half of 2025.
Concurrently, Surrozen provided an update on the Phase 1a trial of SZN-043 in healthy volunteers and cirrhosis patients.
The Phase 1a study was completed in February 2024. SZN-043 demonstrated acceptable safety and tolerability in all subjects, with evidence of target engagement, Wnt signal activation, and effects on liver function.
The company is in the process of initiating the multi-center Phase 1b clinical trial, with proof-of-concept data expected in the first half of 2025.
Price Action: SRZN shares are down 27.1% at $11.00 on the last check Monday.
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