SAB BIO entered into a securities purchase agreement with certain accredited and institutional investors to raise $175M upfront in gross proceeds in an oversubscribed private placement financing. The private placement includes participation from strategic investor Sanofi, along with new investors RA Capital Management, Commodore Capital, Vivo Capital, Blackstone Multi-Asset Investing, Spruce Street Capital, Forge Life Science Partners and Woodline Partners LP, and existing investors Sessa Capital, the T1D Fund, and ATW Partners. Pursuant to the terms of the Agreement, SAB BIO will issue an aggregate of up to 1,000,000 shares of the Company’s Series B nonvoting convertible preferred stock, which are convertible into up to an aggregate of 100,000,000 shares of the Company’s common stock at a conversion price of $1.75 per share. In addition, the Company will issue warrants to purchase up to an aggregate of 1,500,000 shares of the Company’s Series B preferred stock, for up to an additional $284less than in gross proceeds if exercised in full. The private placement is expected to close on or about July 22, 2025, subject to customary closing conditions. Further information regarding the private placement can be found in the Company’s filings with the Securities and Exchange Commission, including a current report on Form 8-K which is expected to be filed on or about July 21, 2025. SAB BIO intends to use the net proceeds from the private placement to fully fund the Phase 2b SAFEGUARD study of SAB-142 in Stage 3 autoimmune T1D, and for working capital and general corporate purposes. The proceeds from the private placement combined with the Company’s current cash and cash equivalents are expected to extend its cash runway into the middle of 2028. Leerink Partners is acting as lead placement agent for the private placement. UBS Investment Bank, Chardan and Oppenheimer & Co. are acting as joint placement agents.
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