IO Biotech, Inc. (Nasdaq: IOBT) announced today that it has entered into a definitive securities purchase agreement for a private placement, garnering a total of $75 million in gross proceeds from investors such as Lundbeckfonden BioCapital, Kurma Growth Opportunities Fund, Vivo Capital, Armistice Capital, and many more.
The biopharmaceutical company, which is developing novel, immune-modulating cancer vaccines based on its T-win® technology platform, also received support from its own management team. These funds will assist IO Biotech in advancing its cutting-edge cancer vaccine technology.
“IO Biotech’s President and CEO Mai-Britt Zocca, PhD expressed her appreciation for the tremendous support from existing investors, as well as enthusiasm from new healthcare investors for IO102-IO103, evidenced by the success of its recent financing round. The funds from this round will enable IO Biotech to power their operations through to 2025, taking IO102-IO103 through key clinical milestones, including the pivotal Phase 3 trial for first-line advanced melanoma and the Phase 2 studies.”
The company has closed a securities purchase agreement with investors, granting them the right to purchase up to 37,065,647 shares of common stock at a combined price of $2.025 each, accompanied by warrants to buy the same amount of shares at a discounted price of $2.47 per share. The validity of these warrants will extend over a period of three years and six months, allowing investors the potential of a great return on their investment.
The offer and sale of the mentioned securities are being conducted in a private offering, and they have not been registered under the Securities Act of 1933 or any state securities laws. Consequently, these securities cannot be reoffered or resold in the United States without an effective registration statement for these securities or an exemption from the registration requirements of the Securities Act and the applicable state securities laws. Morgan Stanley and Piper Sandler acted as joint placement agents for the financing.
This is not an invitation to purchase securities and there shall be no sales of securities in any state where such offer, solicitation or sale is prohibited under the respective state’s securities laws. Investing in these securities carries certain risks, and potential buyers are encouraged to seek qualified legal advice before making their purchase.
IO102-IO103 is a potentially revolutionary immune-modulating cancer vaccine geared towards tackling the immunosuppressive nature of proteins like indoleamine 2,3-dioxygenase (IDO) and PD-L1. Currently, the company is undergoing a Phase 3 trial (IOB-013/KN-D18; NCT05155254) to evaluate the efficacy of IO102-IO103 when combined with pembrolizumab for the first-line treatment of advanced melanoma. An additional Phase 2 basket trial (IOB-022/KN-D38; NCT05077709) is being conducted to further assess the safety and efficacy of IO102-IO103 when used as part of a combination therapy with pembrolizumab to treat advanced cases of NSCLC and SCCHN.
About IO Biotech
IO Biotech is revolutionizing cancer treatment with its ground-breaking T-win® vaccine platform, designed to activate T cells to target the immunosuppressive cells of the tumor microenvironment. Through advancing clinical studies of its lead cancer vaccine candidate, IO102-IO103, targeting IDO and PD-L1, and by developing other innovative pipeline candidates, the company is making strides in this fight. Located in Copenhagen, Denmark, and with US headquarters in New York, New York, IO Biotech is committed to finding a cure for cancer.
The future looks promising for IO Biotech, as the company is set to close a private placement and conduct an interim analysis of its Phase 3 trial in the near future. Other trials conducted by the company are expected to progress with positive results, all while the company’s financial position and cash runway remain strong.
However, these forward-looking statements are subject to numerous risks and uncertainties, so while IO Biotech is optimistic about the future, there is no guarantee that everything will go as planned. Still, IO Biotech remains committed to keeping its customers informed and up to date by regularly updating results, and will continue to strive towards success.