Azitra secures funding deal for dermatology treatments

BRANFORD, Conn. - Azitra, Inc. (NYSE American: AZTR), a biopharmaceutical company specializing in precision dermatology, has entered into a share purchase agreement with Alumni Capital LP to secure up to $20 million in funding. This strategic partnership aims to support the advancement of Azitra’s portfolio of therapies for rare and severe skin conditions. According to InvestingPro data, the company, currently valued at $4.42 million, maintains a healthy current ratio of 3.8, indicating strong short-term liquidity despite challenging market conditions.

The agreement grants Azitra the right to sell shares and warrants to Alumni Capital over a 20-month period at market-based prices. Azitra maintains control over the timing and amount of equity sales, a move designed to minimize shareholder dilution and enhance value as the company progresses its clinical pipeline. InvestingPro analysis reveals the company is quickly burning through cash, with a weak overall Financial Health Score of 1.56, highlighting the strategic importance of this funding arrangement.

Azitra’s focus is on two key programs: ATR-12 for Netherton Syndrome, a potentially fatal rare skin disease, and ATR-04 for EGFRi associated rash, affecting an estimated 150,000 U.S. individuals. Both programs leverage engineered strains of S. epidermidis and have reached clinical trial stages, with ATR-12 in Phase 1b and ATR-04 having an open Investigational New Drug (IND) application. With the stock down over 95% in the past year, InvestingPro subscribers have access to 12 additional key insights about Azitra’s financial position and growth prospects.

The funding mechanism set up with Alumni Capital is subject to certain conditions within the share purchase agreement, including the requirement for shareholder approval for the exercise of warrants. Furthermore, the company must register Alumni’s resale of Azitra’s common stock.

Azitra’s innovative approach combines a proprietary platform of engineered proteins and live biotherapeutic products with artificial intelligence and machine learning to identify potential drug candidates from a microbial library of approximately 1,500 bacterial strains.

The share issuance to Alumni Capital is being executed under exemptions from registration requirements of federal and state securities laws. The company has made it clear that this press release does not represent an offer to sell or a solicitation of an offer to buy any securities.

This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These include the company’s ability to meet conditions of the share purchase agreement, sell shares to Alumni, and successfully complete clinical trials, among others. Azitra’s actual results may differ materially from those projected in the forward-looking statements. Financial metrics from InvestingPro indicate the company holds more cash than debt on its balance sheet, though analysts anticipate sales decline and negative earnings in the current year.

In other recent news, Azitra, Inc. reported a net loss of $9.0 million for the fourth quarter of 2024, concluding the period with $4.6 million in cash. Following the quarter’s end, the company completed two equity financings, securing approximately $2.4 million in gross proceeds, which are expected to support ongoing operations. In a significant financial maneuver, Azitra closed an offering of common stock, issuing 2,495,518 shares and agreeing to issue new warrants for purchasing up to 2,245,967 shares. This strategic move includes a commitment from investors to participate in up to 50% of Azitra’s future financings over the next two years. Additionally, Azitra secured approximately $930,000 in a registered direct offering of common stock, with the proceeds earmarked for working capital and general corporate purposes. Maxim Group revised its price target for Azitra to $2 from $3 while maintaining a Buy rating, reflecting confidence in the company’s financial sustainability into the second half of 2025. The firm’s analysis underscores the importance of Azitra’s financial resources and strategic initiatives in maintaining operations. Azitra’s recent developments highlight its efforts to strengthen its financial position and secure investor support for future growth.

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