Instinct Bio signs term sheet for $150M equity purchase facility

Instinct Bio Technical Company Holdings Inc. (Nasdaq: BIOT) announced it has entered into an indicative term sheet for a proposed equity purchase facility that would allow the company to sell up to $150 million of its common stock over a three-year period, according to a press release.

Under the proposed terms, the company would have the right, but not the obligation, to direct share purchases at a price generally based on the volume-weighted average price of its common stock on the applicable purchase date, less a specified discount.

The company said proceeds would be used to develop its regenerative medicine platform, fund working capital, and pursue strategic acquisitions. The facility follows Instinct Bio's recent business combination with Relativity Acquisition Corp.

Chief Executive Officer Tomoki Nagano said: "We believe this proposed facility would provide additional financial flexibility as we continue to execute our strategic objectives. The structure is intended to allow the Company to access capital opportunistically while managing its financing needs over time."

The company cautioned that there is no assurance that definitive transaction documents will be executed, that conditions to the proposed facility will be satisfied, or that any funding will be obtained under the facility.

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