Adial Pharmaceuticals Inc. (ADIL), a clinical-stage biopharmaceutical company, on Thursday announced the acquisition of Azora Therapeutics Inc. and gained its lead asset AT177, developed for the treatment of ulcerative colitis, as part of the deal.
Following the announcement, shares rose over 35% on Thursday.
Adial concurrently entered into a private placement deal worth $64 million, consisting of an upfront financing with gross proceeds worth $32 million, in exchange for pre-funded warrants to purchase 11,780,948 shares of Adial's common stock at $2.7489 per pre-funded warrant.
A potential $32 million milestone payment will be gained upon initiation of the Phase 1 trial, in exchange for pre-funded warrants to purchase up to 11,780,948 shares and common warrants to purchase up to 11,780,948 shares at a combined purchase price of $2.7489 per pre-funded warrant and accompanying common warrant.
The financing was led by Coastlands Capital with participation from Boxer Capital Management, Stonepine Capital Management, AuGC BioFund and other biotech specialists and institutional investors.
The company will use the proceeds from the placement to advance AT177, a proprietary colon-targeted, aryl-hydrocarbon (AhR)-receptor agonist, designed for localized pharmacologic activity at sites of inflammation in the colon.
The drug is being developed for the treatment of ulcerative colitis in ongoing studies to enable an investigational new drug (IND) application. Proof-of-concept clinical studies are planned for initiation in 2027.
ADIL closed Thursday at $2.98, up 37.96%. In the pre-market, shares are trading at $2.55, down 14.38%.
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