FibroBiologics closes $3M private placement with warrant upside

FibroBiologics, Inc. (NASDAQ: FBLG), a clinical-stage biotechnology company based in Houston, announced the closing of a private placement that raised approximately $3.0 million in upfront gross proceeds, before placement agent fees and other offering expenses.

The offering included 4,081,633 shares of common stock, or pre-funded warrants in lieu thereof, priced at $0.735 per share. The transaction also included two series of warrants — series A and short-term series B — each covering up to 4,081,633 shares at an exercise price of $0.735 per share. If both warrant series are exercised in full on a cash basis, the company could receive up to an additional $6.0 million in gross proceeds, bringing the total potential raise to approximately $9.0 million. The company cautioned that no assurance can be given that any warrants will be exercised.

The series A warrants expire five years from the later of the stockholder approval date and the effective date of the resale registration statement. The short-term series B warrants expire 18 months from the same reference date. Both warrant series become exercisable on or after the effective date of stockholder approval of the share issuance.

FibroBiologics said it intends to use net proceeds for working capital and general corporate purposes.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering. The securities were offered under Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D and have not been registered under federal or state securities laws. The company has agreed to file a resale registration statement covering the securities.

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