Categories Health Care, LATEST

Ocean Biomedical announces private placement of $25 mln convertible notes

Biopharma company Ocean Biomedical, Inc. (NASDAQ: OCEA) on Tuesday said it has entered into a private placement pursuant to a securities purchase agreement with Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B for the issuance and sale of a total of around $25 million facility of Senior Secured Convertible Promissory Notes. The notes will be funded in multiple tranches, subject to certain conditions.

“We are thrilled to have partnered with Alto on this funding arrangement, which will enable us to continue pursuing our mission of advancing groundbreaking medical discoveries that can make a positive impact on global health. We are excited to work closely with Alto to create value for all our stakeholders,” said Dr. Chirinjeev Kathuria, Ocean Biomedical’s chairman and co-founder.

Use of Proceeds

Ocean Biomedical is a biopharma company that works with research universities and medical centers for developing and commercializing their discoveries. The company plans to use the proceeds from the private placement for working capital and other general corporate purposes. They include clinical development costs to support the development of drug candidates and the expansion of research and development programs.

“We are excited to announce our partnership with Ocean Biomedical and look forward to supporting their robust pipeline of diverse and innovative candidates. We are hopeful that this collaboration will lead to many more breakthroughs in the years ahead,” said Alto’s Principal, Waqas Khatri.

Convertible Notes

The company expects to issue an aggregate of $25 million of notes, which have a 12-month maturity and are convertible into common shares at an initial conversion price of $10.34 per share, subject to standard anti-dilution provisions and adjustment as further specified in the notes.

“This financing deal will enable us to advance our research and development efforts and bring life-changing therapies to patients with unmet medical needs. We are grateful for our partnership with Alto, who will provide us with valuable resources, expertise, and support, as we work together to accelerate our growth and make a meaningful impact on the healthcare industry,” said Suren Ajjarapu, a director at Ocean Biomedical. “

For the private placement, Maxim Group LLC is acting as the exclusive placement agent. The company has agreed to file a registration statement registering for the sale of the common shares issuable upon conversion of the notes.

Of late, Ocean Biomedical has been making significant progress in its clinical programs for the development of new vaccines for the treatment of malaria and various tumors.  Last month, EF Hutton increased the price target on Ocean Biomedical’s shares to $17 from $10.

Most Popular

Earnings: KB Home (KBH) Q2 2024 profit rises despite lower revenues

Homebuilder KB Home (NYSE: KBH) on Tuesday announced financial results for the second quarter of 2024, reporting an increase in net income. Revenues were down 3%. The company’s net income

What to expect when General Mills (GIS) reports its fourth quarter 2024 earnings results

Shares of General Mills, Inc. (NYSE: GIS) stayed green on Tuesday. The stock has dropped 5% over the past one month. The processed foods company is scheduled to report its

Lennar Corporation (LEN) Earnings: 2Q24 Key Numbers

Lennar Corporation (NYSE: LEN) reported total revenues of $8.8 billion for the second quarter of 2024, up 9% year-over-year. Net earnings attributable to Lennar were $954 million, or $3.45 per share, compared to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top