MediciNova secures $30 million standby equity purchase agreement

LA JOLLA, Calif. - MediciNova, Inc. (NASDAQ:MNOV), currently trading at $1.32 with a market capitalization of $65 million, announced Thursday it has entered into a Standby Equity Purchase Agreement (SEPA) that will allow the biopharmaceutical company to sell up to $30 million of its common stock over a 36-month period.

The agreement with investment funds managed by Yorkville Advisors Global LP gives MediciNova the option, but not the obligation, to sell shares at 97% of the market price. The company can issue stock in individual transactions up to 100% of the daily trading volume from the previous five days.

The arrangement does not include additional warrants and proceeds will be used to advance research and development programs and for general corporate activities.

"Our current cash position affords us the freedom to continue operations and amply fund our ongoing programs," said Dr. Yuichi Iwaki, MediciNova President and CEO. "However, the SEPA provides us with additional flexibility to access capital to further support our R&D initiatives."

MediciNova focuses on developing therapeutics for neurological disorders including amyotrophic lateral sclerosis (ALS), multiple sclerosis, and substance dependence, as well as fibrotic and metabolic disorders. Its lead candidates include MN-166 (ibudilast) and MN-001 (tipelukast).

The company is also listed on the Tokyo Stock Exchange (Code:4875) and advances its pipeline through a combination of investigator-sponsored clinical trials, government-funded trials, and strategic alliances.

According to the press release statement, the SEPA arrangement allows MediciNova to raise capital without issuing warrants and to take advantage of favorable market conditions when needed. InvestingPro analysis shows analyst price targets ranging from $5 to $9, suggesting significant potential upside from current levels. Discover more detailed financial analysis and insights with an InvestingPro subscription.

In other recent news, MediciNova, Inc. announced significant progress in its clinical trials for two developmental compounds. The company is nearing the completion of patient enrollment for its Phase 2/3 COMBAT-ALS trial, with only a few more participants needed to finalize randomization. Additionally, MediciNova’s Phase 2 trial for MN-001, targeting dyslipidemia and fatty liver disease associated with type 2 diabetes, requires just two more patients to complete enrollment. These advancements mark important milestones in MediciNova’s ongoing research efforts. The completion of these trials is anticipated to provide crucial data on the efficacy and safety of the compounds. Investors and stakeholders are closely monitoring these developments, as they could have significant implications for the company’s future. MediciNova’s progress in these trials highlights its commitment to advancing potential treatment options for challenging health conditions.

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