Chemomab secures $10 million in PIPE financing By Investing.com
Summary
TEL AVIV - Chemomab Therapeutics Ltd. (NASDAQ:CMMB), a biotech firm specializing in treatments for fibro-inflammatory diseases, has secured approximately $10 million through a private investment in public equity (PIPE) deal, the company announced on Thursday. The transaction is expected to extend the companys operational runway through early 2026.The PIPE financing saw participation from both new and existing investors, including notable names such as HBM Healthcare Investments and Sphera Biotech Master Fund LP. The funds raised are intended to support the development of Chemomabs lead drug candidate, CM-101, as well as for general corporate and working capital purposes.Chemomabs CM-101 is a monoclonal antibody aimed at neutralizing CCL24 activity, a key driver in fibrosis and inflammation. Positive results from four clinical trials, including a Phase 2 study in primary sclerosing cholangitis and a Phase 2a liver fibrosis trial, have been previously announced by Chemomab.Capital Markets Advisor Oppenheimer & Co. Inc., along with Maxim Group and LifeSci Capital, served as advisors for the PIPE.The securities offered in the PIPE have not been registered under the Securities Act of 1933 and may not be reoffered or resold in the United States absent registration or an applicable exemption from registration requirements.Concurrently with the PIPE agreement, Chemomab and the investors have entered into a registration rights agreement, committing the company to file a registration statement with the SEC for the resale of the ADSs, including those issuable upon exercise of the pre-funded warrants.In other recent news, Chemomab Therapeutics Ltd. reported positive results from a Phase 2 trial of its drug CM-101, demonstrating significant improvements in liver stiffness, a marker of disease progression.The company has plans to engage with the FDA for an end-of-Phase 2 meeting and aims to initiate a Phase 3 trial in 2025. In addition, Chemomab has released findings that strengthen the link between the protein CCL24 and the severity of primary sclerosing cholangitis (PSC), a rare liver disease.The company has also been granted an extension by Nasdaq to meet the exchanges minimum bid price requirement by November 4, 2024.