Shares of Azitra, Inc. (AZTR) were up in overnight trading, rising sharply after the company announced the price of a private placement financing of up to approximately $31.4 million.
Azitra, a clinical-stage biopharmaceutical company developing precision dermatology therapies, said the financing includes initial gross proceeds of about $10.5 million, with the potential for an additional $20.9 million if accompanying warrants are exercised for cash. The transaction is expected to close on or around March 20, 2026, subject to customary conditions.
Launch of New Cosmetic-Focused Programs
The company stated that the financing will support the launch of its new protein and peptide research programs aimed at the cosmetic and cosmeceutical markets. These initiatives leverage Azitra's microbial genetic engineering platform to accelerate the development of high-value ingredients, including its proprietary filaggrin protein and peptide technologies, which target skin concerns such as fine lines, wrinkles and eczema-like dryness.
CEO Francisco Salva said the new program is designed to address skin barrier deficiencies linked to low filaggrin levels- an area of growing scientific filaggrin levels- an area of growing scientific focus in dermatology and cosmetic science.
Financing Structure
Under the securities purchase agreement, investors will receive:
- 10,470 shares of Series A convertible non-redeemable preferred stock,
- Series B warrants to purchase up to 85.1 million shares of common stock, and
- Series C warrants to purchase up to 85.1 million shares.
Each preferred share converts into roughly 8,129 common shares, subject to shareholder approval and ownership limits. The warrants carry an exercise price of $0.123 per share.
Participating investors include healthcare-focused institutional funds such as Stonepine Capital and Nantahala Capital, along with other institutional investors and company insiders.
Use of Proceeds
Azitra plans to use the initial proceeds, along with existing cash, to fund research and development, general corporate purposes, and working capital needs.
Azitra's lead clinical programs include:
-ATR-12, an engineered S. epidermidis designed to treat Netherton syndrome, a rare, chronic skin disease with no approved treatment options, currently in Phase 1b trial, 50% enrollment reported with topline data expected in H2 2026.
-ATR-04, in Phase 1/2 targeting EGFR inhibitor -associated rash, which has received FDA Fast Track designation. First patient dosed in Q3 2025, with topline data from first cohort expected around mid-2026.
-ART-01, is in preclinical stage for Ichthyosis Vulgaris, Positive preclinical data showing delivery of functional filaggrin through human stratum corneum and repair of damaged model skin; IND-enabling studies continue in 2026.
-Bayers Discovery Collaboration, an ongoing partnership focused on identifying engineered microbial strains for dermatology-related applications.
On the Financial front, Azitra reported a net loss of $11.0 million for FY 2025, compared to $9.0 million for the fiscal year 2024.
The company ended December 31, 2025, with cash and cash equivalents of $2.1 million.
AZTR has traded between $0.10 and $2.66 over the past year. The stock closed Thursday's trading at $0.17, up 28.82%. During overnight trading session the stock rose further to $0.24, up 40%
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