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Spruce Biosciences Announces $53.6 Million Private Placement Financing
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Spruce Biosciences, Inc. (Nasdaq: SPRB), a late-stage biopharmaceutical company focused on developing and
About this update from Spruce Biosciences, Inc.
[{"type":"text","content":" SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--\nSpruce Biosciences, Inc. (Nasdaq: SPRB), a late-stage biopharmaceutical company focused on developing and commercializing novel therapies for rare endocrine disorders with significant unmet medical need, today announced that it has entered into a definitive securities purchase agreement for a private placement that is expected to result in gross proceeds of approximately $53.6 million, before deducting offering expenses. The private placement includes participation from new and existing investors, including 5am Ventures, Abingworth, Armistice Capital, HealthCap, Novo Holdings A/S, RiverVest Venture Partners, and Rock Springs Capital.\n\n“We are pleased that this impressive group of healthcare investors came together to support the late-stage development of tildacerfont, which has the potential to transform the treatment of congenital adrenal hyperplasia (CAH) and other endocrine disorders,” said Javier Szwarcberg, M.D., M.P.H., Chief Executive Officer of Spruce Biosciences. “This financing is expected to allow us to fund operating and capital expenditures into the first half of 2025, including the completion of CAHmelia-203, with topline results anticipated in the second half of 2023, and topline results for CAHmelia-204 anticipated in the second half of 2024.”\n\nUnder the securities purchase agreement, the investors have agreed to purchase approximately 16.1 million shares of the company’s common stock and accompanying warrants to purchase up to an aggregate of approximately 12.7 million shares of common stock, at a combined purchase price of $3.17 per share and accompanying warrant. In lieu of shares of common stock, as a portion of its investment, an investor purchased pre-funded warrants at a purchase price of $3.16, which equals the purchase price per share of common stock and accompanying warrant, less the $0.01 per share exercise price of each pre-funded warrant. Each accompanying warrant will represent the right to purchase one share of the company’s common stock at an exercise price of $3.96 per share. The pre-funded warrants and accompanying warrants will be exercisable for a period of five years following the date of issuance.\n\nSVB Securities is acting as the placement agent for the financing.\n\nThe offer and sale of the foregoing securities are being made in a tran...