Rein Therapeutics enters agreements for up to $21M in financing

Rein Therapeutics (RNTX) entered into two strategic financing agreements with an affiliate of Yorkville Advisors Global, LP, providing the potential for access to up to $21 million in capital. The financing includes: A $6 million pre-paid advance agreement, with an initial $1 million advance funded at signing. A $15 million standby equity purchase agreement, which Rein may use at its discretion over 36 months, subject to an effective registration statement. Rein intends to use the proceeds from these facilities to support its RENEW Phase 2 trial of its lead asset – LTI-03 – for the treatment of idiopathic pulmonary fibrosis, for the research and development of other product candidates, and for working capital and other general corporate purposes. Key Terms: Pre-paid Advance Facility: Up to $6 million may be drawn over the next twelve months in mutually agreed tranches. Each pre-paid advance will be purchased at a 5% discount, bears interest, and if and when requested by Yorkville, will be repaid in common stock of the company at a discounted price. SEPA: Rein has the option, but not the obligation, to sell to Yorkville up to $15 million of common stock over 36 months. Sales under the SEPA require a registration statement to be declared effective by the SEC.