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BOSTON - X4 Pharmaceuticals (NASDAQ:XFOR) closed an upsized private placement raising $85 million through the sale of common stock and pre-funded warrants, according to a press release statement issued Wednesday. The financing comes at a crucial time for the company, which has seen its stock surge over 63% in the past week, though it remains down 86% from its 52-week high of $26.83. According to InvestingPro data, the company has been rapidly burning through cash while maintaining a healthy current ratio of 3.19.
The biopharmaceutical company, which focuses on rare diseases of the immune system, initially announced a $60 million offering but increased the amount to accommodate an investor with a pre-existing investment right. InvestingPro analysis reveals 12 additional key insights about X4’s financial health and market position, available to subscribers.
The financing involved the sale of 11,040,776 shares of common stock and pre-funded warrants to purchase 48,852,772 shares. Coastlands Capital led the offering, with participation from existing investors including Empery Asset Management, Bain Capital Life Sciences, and New Enterprise Associates.
Additional participants included BVF Partners LP, Deep Track Capital, Kalehua Capital, Nantahala Capital, Stonepine Capital Management, and Trails Edge Capital Partners.
X4 plans to use the proceeds to support continued development of mavorixafor for potential approval in chronic neutropenia, as well as for commercialization of the drug for WHIM syndrome. The company is currently conducting a global Phase 3 clinical trial evaluating mavorixafor in people with certain chronic neutropenic disorders.
The securities sold in the private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an effective registration statement or applicable exemption. X4 has agreed to file a registration statement with the Securities and Exchange Commission for the resale of these securities.
X4 Pharmaceuticals is headquartered in Boston and markets mavorixafor in the U.S. under the brand name XOLREMDI for its first approved indication. While analysts project sales growth this year, InvestingPro data indicates the company is not expected to achieve profitability in the current fiscal year. Discover comprehensive analysis and detailed financial metrics in the Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.
In other recent news, X4 Pharmaceuticals announced it has secured approximately $60 million in private placement financing. This financing effort was led by Coastlands Capital, with participation from Bain Capital Life Sciences, New Enterprise Associates, and other investors. The company has also made leadership changes, bringing in new executives with turnaround experience. Additionally, X4 Pharmaceuticals has presented positive data from its Phase 2 trial of mavorixafor for chronic neutropenic conditions. The trial, which enrolled 23 participants, showed promising results for both monotherapy and combination treatment with granulocyte colony-stimulating factor. Further bolstering its prospects, the U.S. Food and Drug Administration has granted Fast Track designation to mavorixafor for treating chronic neutropenia. This designation is intended to expedite the review process for drugs addressing unmet medical needs. The drug is currently in a global Phase 3 trial, with full enrollment anticipated later this year.
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