NEW YORK - IN8bio, Inc. (NASDAQ:INAB), a clinical-stage biopharmaceutical company, has announced a successful private placement with accredited investors, anticipating gross proceeds of roughly $12.4 million. This capital infusion is expected to extend the company's financial runway through 2026, supporting its operations and clinical development programs, particularly the advancement of its lead candidate, INB-100, for Acute Myeloid Leukemia (AML) patients.
The private placement, led by a healthcare-focused institutional investor, also attracted participation from a large mutual fund company and other institutional investors. The company will issue an aggregate of over 25 million shares of common stock, pre-funded warrants to purchase additional shares, and warrants for up to approximately 31 million shares of common stock. Units were priced at $0.395, with pre-funded warrants at a nominal exercise price.
IN8bio aims to utilize the net proceeds to further clinical trials of INB-100 and future product candidates, as well as for working capital and other corporate needs. The funding is slated to support the enrollment of around 25 patients in a new expansion cohort for the ongoing Phase 1 trial of INB-100, with the goal of completing enrollment in the first half of 2025. The company also plans to add a parallel control cohort to the study to strengthen comparative data between INB-100 recipients and those receiving standard haplotransplantation.
The closing of the private placement, subject to standard conditions, is expected around October 4, 2024. Newbridge Securities Corporation served as the sole placement agent for the transaction. The securities offered have not been registered under the Securities Act of 1933 and are subject to restrictions on their sale in the U.S.
IN8bio specializes in developing gamma-delta T cell-based immunotherapies, with INB-100 designed for AML patients following stem cell transplants. The company is also evaluating treatments for glioblastoma.
This financial move is part of IN8bio's strategic efforts to expand its clinical programs and comes with the anticipation of long-term follow-up results expected in late 2025 and 2026. The company's forward-looking statements address the expected use of proceeds and projected clinical trial achievements, while also acknowledging the risks and uncertainties inherent in such clinical developments.
The information reported is based on a press release statement from IN8bio, Inc.
In other recent news, IN8bio Inc. has seen a series of significant developments. The company announced the departure of its Chief Medical Officer, Trishna Goswami, under a mutual agreement. The terms of the separation will be detailed in IN8bio's forthcoming Quarterly Report, and a successor has not yet been announced.
In line with strategic changes, IN8bio has amended the employment agreements of five key executives and reduced its workforce by approximately 49%. The company has also reported encouraging results from its INB-100 program for acute myeloid leukemia, but has suspended further enrollment in its INB-400 Phase 2 trial for glioblastoma.
Analyst firms Laidlaw & Company and Jones Trading have maintained their Buy ratings on IN8bio, following positive Phase I study results for INB-100. The company's INB-200 therapy has shown positive results in Phase 1 studies, with 92% of patients surpassing the median progression-free survival of seven months. IN8bio is now advancing to a Phase 2 trial with INB-400, a related therapy.
InvestingPro Insights
IN8bio's recent private placement aligns with its current financial position and market performance. According to InvestingPro data, the company's market capitalization stands at $12.63 million, which is close to the $12.4 million gross proceeds expected from this new funding round. This capital infusion is crucial, as InvestingPro Tips indicate that IN8bio has been "quickly burning through cash" and is "not profitable over the last twelve months."
The company's stock performance has been challenging, with InvestingPro data showing a 74.04% price decline over the past year. This context underscores the importance of the new funding for IN8bio's ongoing operations and clinical trials. An InvestingPro Tip notes that the stock is "trading near 52-week low," which may have influenced the timing of this capital raise.
Despite these challenges, InvestingPro Tips reveal some positive aspects of IN8bio's financial health. The company "holds more cash than debt on its balance sheet" and its "liquid assets exceed short term obligations." These factors could provide some financial stability as IN8bio pursues its clinical development programs.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for IN8bio, providing a deeper understanding of the company's financial position and market performance.
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