iBio prices $50 million public offering of warrants for antibody research

SAN DIEGO - iBio, Inc. (NASDAQ:IBIO) announced Tuesday the pricing of an underwritten public offering expected to raise approximately $50 million in gross proceeds to fund its preclinical research programs. The announcement comes as InvestingPro data shows the company has been quickly burning through cash, with negative EBITDA of $16 million in the last twelve months.

The AI-driven antibody therapeutics company is offering pre-funded warrants to purchase 71,540,000 shares of common stock, along with Series G warrants that provide rights to additional shares and Series H warrants. The combined public offering price is $0.699 per unit, coming after the stock has experienced an 81% decline over the past six months, according to InvestingPro data.

The offering is expected to close around August 22, 2025, subject to customary closing conditions. If all warrants sold in the offering were to be exercised at their exercise price of $0.70 per share, iBio could receive additional gross proceeds of approximately $50 million.

iBio plans to use the proceeds to advance its preclinical cardiometabolic programs, including IBIO-610, a myostatin and activin A bispecific, and IBIO-600 programs, through key development milestones. The company will also continue to progress other preclinical pipeline assets and fund working capital requirements.

Leerink Partners is acting as lead bookrunner for the offering, with LifeSci Capital and Oppenheimer & Co. serving as bookrunning managers. Brookline Capital Markets, a division of Arcadia Securities, LLC, is acting as financial advisor to iBio.

The offering is being made pursuant to a shelf registration statement on Form S-3 filed with the SEC, which became effective on August 6, 2024.

According to the press release statement, iBio focuses on developing antibody treatments for cardiometabolic diseases, obesity, cancer and other difficult-to-treat conditions using artificial intelligence and computational biology approaches. With a current market capitalization of just $11.8 million and trading near its Fair Value according to InvestingPro analysis, investors can access 12 additional ProTips and comprehensive financial metrics with an InvestingPro subscription.

In other recent news, iBio, Inc. announced a public offering to support its cardiometabolic programs, involving pre-funded warrants and Series G and H warrants. The company also received a notification from Nasdaq regarding a minimum bid price deficiency, allowing iBio 180 days to regain compliance by maintaining a stock price of at least $1.00 for ten consecutive business days. Additionally, iBio reported promising preclinical results for its amylin receptor agonist antibody, which demonstrated a significant reduction in acute food intake in an obesity mouse model. The company has initiated a primate study for its obesity antibody candidate, IBIO-610, to assess its effects on fat reduction and body composition, with initial data expected in the early fourth quarter. Furthermore, iBio is set to host a conference call to discuss its latest advancements in obesity and cardiometabolic treatments, including its collaboration with AstralBio and developments on the Myostatin antibody IBIO-600.

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