ADELAIDE, Australia - Bionomics Limited (NASDAQ: BNOX), a clinical-stage biotech company, announced a private placement agreement with an institutional investor for up to $70 million. The investor will purchase American Depository Shares and accompanying warrants in three tranches, with the first tranche providing an upfront payment of $7.5 million to Bionomics.
The subsequent tranches, amounting to $50 million, are contingent upon achieving regulatory and clinical milestones related to Bionomics' PTSD program. The second tranche is conditional upon FDA interactions or by December 31, 2024, and the third tranche depends on a PTSD study review or by December 31, 2025.
The private placement, expected to close on or about June 3, 2024, is subject to customary closing conditions. Bionomics has committed to registering the securities for resale, as per U.S. regulations. Leerink Partners is the exclusive placement agent for this financing.
Bionomics intends to use the proceeds to advance its clinical pipeline, including BNC210 for Social Anxiety Disorder and PTSD, and for general corporate purposes. The company anticipates that the first tranche, combined with its current financial assets, will sustain operations into the third quarter of 2025.
This funding arrangement follows Bionomics' efforts to develop treatments for central nervous system disorders. The company's lead candidate, BNC210, is part of a broader pipeline targeting various CNS conditions.
The securities offered in the private placement have not been registered under the Securities Act of 1933 and cannot be sold in the U.S. without registration or an exemption. This press release is not an offer to sell or a solicitation of an offer to buy these securities.
The information in this article is based on a press release statement from Bionomics Limited.
InvestingPro Insights
Bionomics Limited (NASDAQ: BNOX) has recently secured a significant private placement that could inject up to $70 million into the company, contingent on reaching key milestones. As investors consider the potential impact of this development on BNOX's financial health and stock performance, several metrics and tips from InvestingPro can provide deeper insights into the company's current status and future prospects.
One notable InvestingPro Tip is that BNOX holds more cash than debt on its balance sheet. This is a reassuring sign for investors, as it indicates that the company has a buffer of liquidity that could support its operations and investment in its clinical pipeline, especially in the development of BNC210 for Social Anxiety Disorder and PTSD.
Another InvestingPro Tip reveals that analysts anticipate sales growth in the current year for Bionomics. This outlook aligns with the company's expectations that the proceeds from the private placement will sustain operations well into the third quarter of 2025, potentially allowing Bionomics to reach critical milestones and unlock further funding tranches.
From the InvestingPro Data, BNOX's market capitalization stands at a modest $10.56 million USD. The company's P/E ratio is currently negative at -0.46, reflecting analysts' forecasts that the company will not be profitable this year. Moreover, the company's gross profit margin is deeply negative at -2405.04% for the last twelve months as of Q2 2024, underscoring challenges in achieving profitability.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips on BNOX, which can be found at https://www.investing.com/pro/BNOX. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing valuable insights for informed investment decisions.
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