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Skye Bioscience Announces $40 Million Private Placement Equity Financing
Financing expected to fund strategic expansion of obesity clinical development and extend operating runway beyond 2026 San Diego, California--(Newsfile Corp.
About this update from Skye Bioscience, Inc.
[{"type":"text","content":"Financing expected to fund strategic expansion of obesity clinical development and extend operating runway beyond 2026\nSan Diego, California--(Newsfile Corp. - March 11, 2024) - Skye Bioscience, Inc. (OTCQB: SKYE) (the Company), a clinical stage biotechnology company focused on the discovery, development and commercialization of novel classes of therapeutic drugs that modulate the endocannabinoid system, today announced that it has entered into a securities purchase agreement for the sale of 4,000,000 shares of its common stock at $10.00 per share to certain investors in a private placement (the \"PIPE\") to certain qualified institutional buyers. Gross proceeds from the PIPE are expected to be $40 million before deducting any placement agent fees and offering-related expenses. The PIPE financing is expected to close on March 13, 2024, subject to the satisfaction of customary closing conditions.\nInvestors in this financing included Perceptive Advisors, Velan Capital and Schonfeld Strategic Advisors, among others, and certain existing institutional Skye shareholders including a life science-focused investor, 5AM Ventures, Altium Capital and Sphera Healthcare.\nPiper Sandler & Co. is acting as the lead placement agent and Oppenheimer & Co. is acting as a placement agent for the PIPE financing.\n\"Our January PIPE financing provided funding for our immediate Phase 2 clinical development plans for obesity and glaucoma. Adding additional capital gives us the ability to proactively expand the strategic development of our unique peripheral CB1 inhibitor, nimacimab, for obesity. This monoclonal antibody offers differentiated characteristics within this class of mechanism and we look forward to broadly assessing its therapeutic potential,\" said Punit Dhillon, CEO and Chair of Skye. \"We are also pleased to add to our healthcare-focused institutional shareholder base.\"\nThe securities being issued and sold in the PIPE have not been registered under the Securities Act of 1933, as amended (the \"Securities Act\"), or the securities laws of any state, and may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. The Company has agreed to file a registration statement with the Securities and Exchange Commissio...