Connect Biopharma Holdings Limited (NASDAQ: CNTB) announced it has entered into a securities purchase agreement to sell 6,130,000 ordinary shares in a private placement at $3.25 per share, generating approximately $20.2 million in gross proceeds before fees and expenses.

The private placement is expected to close on or about March 31, 2026, subject to customary closing conditions. The funding was led by the company's largest current investor, Panacea Venture, with participation from other existing and new U.S.-based healthcare investors.

Leerink Partners and Cantor are serving as joint placement agents for the transaction.

Connect Biopharma stated it intends to use the net proceeds to fund research and development of its clinical-stage product candidates and other development programs, as well as for working capital and general corporate purposes. The company expects the proceeds, combined with existing cash, cash equivalents, and short-term investments, to fund operations into the second half of 2027.

The securities have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption. Connect Biopharma has agreed to file a registration statement with the Securities and Exchange Commission for the resale of the shares no later than 45 days after closing.

The San Diego-based clinical-stage biopharmaceutical company is developing rademikibart, an antibody targeting IL-4Rα for the treatment of acute exacerbations of asthma and COPD. Connect has granted an exclusive license for rademikibart in Greater China to Simcere Pharmaceutical Co., Ltd.