Zura Bio to sell 20.1M shares at $3.11 in oversubscribed private placement

Zura Bio announced that it has entered into subscription agreements for a private placement that is expected to result in gross proceeds of approximately $112.5M, before deducting placement agent fees and offering expenses. The private placement is led by Access Biotechnology and a life sciences-focused institutional investor, and includes participation from other new and existing investors, including RA Capital Management, Deep Track Capital, Great Point Partners, Suvretta Capital, funds managed by Allostery Investments LP, Armistice Capital, and other large investment management firms. Zura Bio has agreed to sell an aggregate of approximately 20.1M Class A ordinary shares at a purchase price of $3.108 per share, and, in lieu of Class A ordinary shares to certain investors, pre-funded warrants to purchase up to an aggregate of 16.1M Class A ordinary shares at a purchase price of $3.107 per pre-funded warrant. Each pre-funded warrant will have an exercise price of $0.001 per ordinary share and will be immediately exercisable and remain exercisable until exercised in full. The private placement is being conducted in accordance with applicable Nasdaq rules and was priced to satisfy the “Minimum Price” requirement. The private placement is expected to close on April 22, subject to satisfaction of customary closing conditions. Anticipated proceeds from the private placement are expected to support the accelerated development of tibulizumab, including the planned Phase 2 clinical trial in systemic sclerosis, the initiation of a Phase 2 trial evaluating tibulizumab for the treatment of hidradenitis suppurativa, and general corporate purposes. The combination of anticipated net proceeds with existing cash and cash equivalents is expected to support operations through 2027.