Business
Equillium Announces Common Stock Purchase Agreement for up to $15 Million with Lincoln Park Capital
LA JOLLA, Calif., March 30, 2020 (GLOBE NEWSWIRE) -- Equillium, Inc. (Nasdaq: EQ), a clinical-stage biotechnology company leveraging deep understanding of
About this update from Equillium, Inc.
[{"type":"text","content":"LA JOLLA, Calif., March 30, 2020 (GLOBE NEWSWIRE) -- Equillium, Inc. (Nasdaq: EQ), a clinical-stage biotechnology company leveraging deep understanding of immunobiology to develop products to treat severe autoimmune and inflammatory disorders, today announced it has entered into a common stock purchase agreement for up to $15 million with Lincoln Park Capital Fund, LLC (“LPC”), a Chicago-based institutional investor. \n Under the terms of the purchase agreement, and once a registration statement relating to the transaction has been declared effective, Equillium will have the right at its sole discretion, but not the obligation, to sell to LPC up to $15 million worth of shares of its common stock over the 36-month term of the agreement. The price of Equillium’s shares of common stock sold is as set forth in the purchase agreement and is generally based on the market prices prevailing at the time of each sale to LPC. Equillium controls the timing and amount of any future sales of its shares of common stock, subject to various limitations including those under the Nasdaq listing rules. There is no upper limit as to the price per share that LPC may pay for future stock issuances under the purchase agreement, and LPC has agreed not to cause or engage in any direct or indirect short selling or hedging of Equillium’s common stock. Equillium may terminate the purchase agreement at any time, at its sole discretion, without any cost or penalty. Equillium intends to use the net proceeds from the sale of its common stock under the purchase agreement for working capital and general corporate purposes. “We are pleased to enter into this agreement with Lincoln Park Capital, as it represents an important potential source of additional capital available to the Company, which could be used to help fund the continued advancement of our clinical development of itolizumab,” said Jason Keyes, chief financial officer of Equillium. “This commitment provides Equillium with a flexible option to opportunistically strengthen our balance sheet at appropriate times to support our evolving business needs.” Additional information regarding the purchase agreement with LPC is available in the Current Report on Form 8-K that Equillium filed with the Securities and Exchange Commission (“SEC”) on March 30, 2020. This press release shall not constitute an offer to s...