Kiora Pharmaceuticals closes $24 million private placement

Kiora Pharmaceuticals Inc. (NASDAQ: KPRX) closed a private placement providing up to $24 million in gross proceeds, the company announced. The transaction includes $5 million in upfront funding and up to an additional $19 million upon exercise of milestone-based warrants.

Perceptive Advisors and ADAR1 Capital Management were the sole investors in the placement, which closed on April 6. No placement agent was engaged for the transaction, and the placement was priced at-the-market under Nasdaq rules.

Under the agreement terms, each share of common stock was sold with four short-term Tranche A-1 common warrants and one Tranche A-2 common warrant at a combined purchase price of $2.543 per share. The Tranche A-1 warrants have an initial term of up to nine months, reduced to 30 days if Kiora executes a strategic transaction that materially expands its therapeutic assets' market opportunity.

The Tranche A-2 warrants have an initial term of up to four years, reduced to 30 days upon any Kiora assets completing enrollment in a Phase 3 clinical trial. All common warrants are immediately exercisable at $1.94 per share, representing potential aggregate gross proceeds of approximately $19 million if exercised in full.

Kiora intends to use the upfront proceeds for general corporate purposes, including business operations, strategic business development activities, and ongoing research and development.

The biotechnology company develops therapies for retinal disease. Its pipeline includes KIO-301 for retinitis pigmentosa treatment and KIO-104 for macular edema due to retinal inflammation.

The company has agreed to file a registration statement with the Securities and Exchange Commission covering resale of the shares sold in the private placement and shares issuable upon warrant exercise. Blank Rome LLP served as legal advisor for the transaction.

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