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CAMBRIDGE, Mass. - Vor Bio (NASDAQ:VOR), a clinical-stage biotechnology company focused on autoimmune diseases, announced Wednesday it has entered into a securities purchase agreement for a private placement expected to generate approximately $175 million in gross proceeds. The announcement comes as the company’s stock shows significant volatility, with a 48% gain over the past week despite a 74% decline over the last year. According to InvestingPro analysis, Vor Bio currently maintains a healthy balance sheet with more cash than debt and a current ratio of 3.88x.
Under the agreement, Vor Bio will issue prefunded warrants to purchase 700 million shares of common stock at $0.25 per warrant. The warrants have an exercise price of $0.0001 per share and will become exercisable after stockholder approval.
The private placement includes participation from existing investor RA Capital Management alongside new investors Mingxin Capital, Forbion, Venrock Healthcare Capital Partners, Caligan Partners, and NEXTBio.
The company plans to use the proceeds to advance its clinical pipeline, which includes telitacicept, a dual-target fusion protein currently in Phase 3 clinical development for autoantibody-driven conditions.
The financing is expected to close on June 27, 2025, subject to customary closing conditions. Vor Bio will hold a special stockholder meeting to approve the issuance of shares underlying the warrants.
The securities being issued have not been registered under the Securities Act of 1933 and cannot be offered or sold in the United States except under an effective registration statement or applicable exemption. Vor Bio has agreed to file a registration statement with the SEC for the resale of shares issuable upon exercise of the warrants.
This announcement is based on a press release statement from the company.
In other recent news, Vor Biopharma Inc. has secured exclusive rights to develop and commercialize telitacicept outside Greater China, following an agreement with RemeGen Co., Ltd. This deal involves an initial payment of $125 million, including a $45 million upfront payment and $80 million in warrants, with potential regulatory and commercial milestones exceeding $4 billion. Alongside this acquisition, Vor Bio announced the appointment of Jean-Paul Kress, M.D., as Chief Executive Officer and Chairman of the Board, replacing Robert Ang. Meanwhile, Stifel and Baird have downgraded Vor Biopharma’s stock rating, citing concerns over clinical data and financial challenges. Stifel reduced its target price from $5.00 to $0.30, while Baird lowered it from $14.00 to $0.25, reflecting the company’s operational shift and financial outlook. Vor Biopharma has announced a strategic review and is winding down its clinical and manufacturing operations, resulting in a 95% workforce reduction. The company is exploring various strategic alternatives, including potential asset sales or mergers. As of December 31, 2024, Vor Bio reported having $91.9 million in cash and equivalents, with first-quarter financial results expected on May 14, 2025.
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