Longeveron Inc. (NASDAQ: LGVN) announced the closing of a private placement that raised $15 million initially, with the potential for an additional $15 million tied to milestones related to its clinical trial for Hypoplastic Left Heart Syndrome.

The biotechnology company issued 6,013,384 shares of Class A common stock at $0.52 per share and Series A Non-Voting Convertible Preferred Stock convertible into 22,832,770 shares of common stock. The preferred shares have a conversion price of $0.52 per share and are immediately convertible.

Coastlands Capital led the financing, with participation from Janus Henderson Investors, Logos Capital, and Kalehua Capital. H.C. Wainwright & Co. served as the exclusive placement agent.

The additional $15 million in proceeds would be contingent on achieving certain milestone conditions related to results from the company's Phase 2b ELPIS II clinical trial in HLHS and share price performance. The company expects the initial proceeds to extend its cash runway into the fourth quarter of 2026, beyond the anticipated Phase 2b trial data readout in the third quarter of 2026.

As part of the agreement, investors will receive 50% of proceeds from any future sale of a Rare Pediatric Disease Priority Review Voucher that Longeveron might receive from the FDA for its laromestrocel program.

Longeveron plans to use the funds for clinical and regulatory development of laromestrocel, working capital, and general corporate purposes. The company is developing cellular therapy treatments for rare pediatric and chronic aging-related conditions, with pipeline programs targeting hypoplastic left heart syndrome, Alzheimer's disease, and pediatric dilated cardiomyopathy.