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Frequency Therapeutics Announces $42 Million Private Placement
WOBURN, Mass.--(BUSINESS WIRE)-- Frequency Therapeutics, Inc. (Nasdaq: FREQ), a clinical-stage biotechnology company focused on harnessing the body’s innate
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[{"type":"text","content":" WOBURN, Mass.--(BUSINESS WIRE)--\nFrequency Therapeutics, Inc. (Nasdaq: FREQ), a clinical-stage biotechnology company focused on harnessing the body’s innate biology to repair or reverse damage caused by a broad range of degenerative diseases, today announced that it has agreed to sell 2,350,108 shares of its common stock in a private placement to institutional and accredited investors. Institutional investors in the private placement included Wasatch Global, Federated Hermes Kaufmann Funds, RTW Investments, Perceptive Advisors, Driehaus Capital Management, Maven Investment Partners US and Alexandria Venture Investments, in addition to other new and existing investors. The transaction is expected to result in gross proceeds to the Company of approximately $42.3 million, based on a price of $18.00 per share, before deducting placement agent fees and other expenses. The closing of the private placement is subject to customary closing conditions and is expected to occur on July 20, 2020.\n\n\nThe Company plans to use the net proceeds from the private placement to further advance the clinical development of FX-322, its lead product candidate in Phase 2a development for sensorineural hearing loss, by gaining additional insights regarding the patient populations and severity of hearing loss that FX-322 may treat. The Company also plans to increase support for its remyelination program in multiple sclerosis, which it intends to move into the clinic in the second half of 2021, and new areas of research where there is potential to utilize the Company’s progenitor cell activation platform.\n\n\nCowen and Company, LLC served as the placement agent for the private placement.\n\n\n“We are very pleased with recent clinical advances demonstrating both delivery of FX-322 to the site of action within the cochlea and the durable hearing response seen in patients from our Phase 1/2 study. This additional investment will further support our ongoing FX-322 development efforts to bring a potential disease modifying therapeutic forward to the millions of individuals suffering from hearing loss, and apply our regenerative medicine platform to other serious degenerative diseases including our remyelination work in multiple sclerosis,” said David L. Lucchino, Chief Executive Officer of Frequency Therapeutics.\n\n\nThe offer and sale of the foregoing sec...