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AUSTIN, Texas - Rein Therapeutics (NASDAQ:RNTX), currently trading at $1.25 and down nearly 20% over the past week according to InvestingPro data, announced Wednesday it has entered into strategic financing agreements with an affiliate of Yorkville Advisors Global, LP, providing access to up to $21 million in capital to support its clinical development programs.
The financing package consists of a $6 million pre-paid advance agreement with an initial $1 million funded at signing, and a $15 million standby equity purchase agreement (SEPA) that can be utilized at the company’s discretion over 36 months, subject to an effective registration statement.
Rein plans to use the proceeds to support its RENEW Phase 2 trial of LTI-03 for idiopathic pulmonary fibrosis (IPF), research and development of other product candidates, and general corporate purposes.
Under the pre-paid advance facility, Rein may draw up to $6 million over the next twelve months in agreed tranches. Each advance will be purchased at a 5% discount, bears interest, and may be repaid in common stock at a discounted price when requested by Yorkville.
The SEPA gives Rein the option to sell up to $15 million of common stock over 36 months, though this requires an effective SEC registration statement.
Rein Therapeutics is developing novel therapies for orphan pulmonary and fibrosis indications. Its lead candidate, LTI-03, has received Orphan Drug Designation in the U.S. The company’s second product candidate, LTI-01, has completed Phase 1b and Phase 2a trials for loculated pleural effusions and has received Orphan Drug Designation in the U.S. and E.U. and Fast Track Designation in the U.S.
The shares under the pre-paid advance agreement are being offered through a previously filed shelf registration statement. According to the company’s press release statement, a detailed description of the agreements will be filed in Rein’s Form 8-K with the SEC. With analysts not anticipating profitability this year and the stock down over 45% year-to-date, investors seeking deeper insights can access additional analysis and 6 more key ProTips through InvestingPro.
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