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Investing.com -- SAB Biotherapeutics Inc (NASDAQ:SABS) stock surged 33% after the clinical-stage biopharmaceutical company announced it has secured an oversubscribed $175 million private placement from strategic and institutional investors.
The financing round attracted participation from strategic investor Sanofi (NASDAQ:SNY), alongside new investors including RA Capital Management, Commodore Capital, Vivo Capital, and Blackstone (NYSE:BX) Multi-Asset Investing. Existing investors Sessa Capital, the T1D Fund, and ATW Partners also contributed to the placement.
The company plans to use the proceeds to fully fund its pivotal Phase 2b SAFEGUARD study evaluating SAB-142 for delaying progression of autoimmune type 1 diabetes in newly diagnosed patients. The financing is expected to extend SAB’s cash runway into the middle of 2028.
Under the terms of the agreement, SAB will issue up to 1,000,000 shares of Series B nonvoting convertible preferred stock, convertible into up to 100,000,000 shares of common stock at a conversion price of $1.75 per share. Additionally, the company will issue warrants that could generate up to $284 million in additional gross proceeds if exercised in full.
The private placement is expected to close on or about July 22, 2025, subject to customary closing conditions. Leerink Partners is acting as lead placement agent, with UBS Investment Bank, Chardan, and Oppenheimer & Co. serving as joint placement agents.
SAB Biotherapeutics is developing a novel immunotherapy platform focused on human anti-thymocyte immunoglobulin (hIgG) for autoimmune type 1 diabetes treatment.
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