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Aileron Therapeutics Announces Common Stock Purchase Agreement for up to $15 Million with Lincoln Park Capital
WATERTOWN, Mass., Sept. 21, 2020 (GLOBE NEWSWIRE) -- Aileron Therapeutics, Inc. (NASDAQ: ALRN), today announced it has entered into a common stock purchase
About this update from Rein Therapeutics, Inc.
[{"type":"text","content":"WATERTOWN, Mass., Sept. 21, 2020 (GLOBE NEWSWIRE) -- Aileron Therapeutics, Inc. (NASDAQ: ALRN), today announced it has entered into a common stock purchase agreement (“Purchase Agreement”) for up to $15 million with Lincoln Park Capital Fund, LLC (“LPC”), a Chicago-based institutional investor and current shareholder.\n In connection with the execution of the purchase agreement, LPC made an initial purchase of $500,000 of common stock at $1.36 per share. Thereafter, Aileron will have the option, but not the obligation, to sell to LPC up to an additional $14.5 million in shares of common stock over a thirty-six-month period subject to certain conditions, including a registration statement being filed and declared effective by the SEC. The price of shares sold will be based on the market prices prevailing at the time of each sale to LPC. There are no upper limits to the price LPC may pay to purchase common stock from Aileron and the purchase price of the shares will be based on the prevailing market prices of Aileron’s shares at the time of each sale to LPC. LPC has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of Aileron’s shares of common stock. No warrants, derivatives, or other share classes are associated with this agreement. In consideration for entering into the agreement, Aileron has issued shares of common stock to LPC as a commitment fee. The agreement may be terminated by Aileron at any time, at its sole discretion, without any additional cost or penalty. Aileron intends to use the net proceeds from the transaction for general corporate purposes and extending its cash runway to support its ALRN-6924 clinical development strategy. A more detailed description of the agreement is set forth in Aileron’s Current Report on Form 8-K to be filed with the SEC. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale are unlawful prior to registration or qualification under securities laws of any such jurisdiction. About Aileron TherapeuticsAt Aileron, we are focused on transforming the experience of chemotherapy for cancer patients, enabling them to fight cancer without the fear or burden of chemot...