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Innovation Pharmaceuticals Announces $7 million Milestone Funding Agreement with Aspire Capital
Innovation Pharmaceuticals Announces $7 million Milestone Funding Agreement with Aspire Capital.
About this update from Innovation Pharmaceuticals Inc.
[{"type":"text","content":"\nBEVERLY, Mass., June 28, 2018 (GLOBE NEWSWIRE) -- Innovation Pharmaceuticals (OTCQB:IPIX) (“the Company”), a clinical stage biopharmaceutical company, today announced that it has entered into a Securities Purchase Agreement (the “Agreement”) with Aspire Capital Fund, LLC (“Aspire”). The Company received $2 million on signing the agreement selling 5,263,158 shares at price per share of $0.38 which was the closing price of the Company’s common stock on June 26, 2018. Under the Agreement the Company can receive an additional $5 million based on clinical, regulatory and business development milestones to be reached prior to September 30, 2018. The specific milestone payments are:\n $1 million upon announcement of Breakthrough Therapy Designation from the FDA for Brilacidin as a potential treatment for oral mucositis (OM). $2 million upon announcement of results from the recently completed Phase 2b trial of Prurisol as a potential treatment for moderate to severe chronic plaque psoriasis showing that the trial has met its primary endpoint. $2 million upon announcement of the Company entering into a licensing arrangement with a pharmaceutical company for any of the Company’s clinical assets that will include an initial payment to the Company of an amount in the double-digits millions of dollars. Each of the milestone payments will be made at a purchase price based on the five-day average of the closing prices of Company’s common stock at the time of each announcement without any discount to such five-day average. “This investment from Aspire will enable us to fund our efforts for important clinical and regulatory progress. The near-term milestones to trigger funding under the Agreement have been an ongoing main focus for the Company. Based on the previously announced Phase 2 results in oral mucositis, we feel that the meaningful reduction in the incidence of severe OM and other favorable endpoints observed in the trial provide strong support for the potential granting of Breakthrough Therapy Designation. Thus, we continue to believe Brilacidin may represent a very promising treatment option for patients subject to this debilitating and painful disease. Additionally, we eagerly await pending results from the statistical analysis of the completed Prurisol Phase...