On June 16, 2025 FibroBiologics, Inc. (Nasdaq: FBLG) ("FibroBiologics"), a clinical-stage biotechnology company with 275+ patents issued and pending with a focus on the development of therapeutics and potential cures for chronic diseases using fibroblasts and fibroblast-derived materials, reported it has closed the third $5 million tranche of the previously announced Standby Equity Purchase Agreement (the "SEPA") with YA II PN, Ltd. ("Yorkville"), an investment fund managed by Yorkville Advisors Global, LP (Press release, FibroBiologics, JUN 16, 2025, View Source [SID1234653918]). The agreement allows FibroBiologics, subject to customary conditions, to sell up to $25 million in the aggregate of its common stock to Yorkville over the course of two years.
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Yorkville agreed to advance to FibroBiologics the first $15 million available under the SEPA in three equal tranches to be evidenced by convertible promissory notes. The first tranche in the amount of $5 million was funded upon entry into the SEPA and the second tranche of $5 million was funded after the filing of a registration statement covering the resale of the shares issuable to Yorkville under the promissory notes. The third tranche of $5 million was funded following the effectiveness of the registration statement and receipt of shareholder approval in satisfaction of certain Nasdaq rules. FibroBiologics can sell an additional $10 million of its common stock to Yorkville, subject to Yorkville’s consent and other conditions, while the convertible promissory notes remain outstanding.
The net proceeds of the financing are expected to be used for general corporate purposes, including funding for research and development programs and supporting the upcoming Phase 1/2 diabetic foot ulcer clinical trial expected to begin in the second half of 2025.
For more information, please visit FibroBiologics’ website or email FibroBiologics at [email protected]. For more information on the SEPA, including important terms and conditions, please see FibroBiologics’ filings with the Securities and Exchange Commission, including its Current Reports on Form 8-K filed with the Securities and Exchange Commission from time to time.
This communication shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the securities discussed herein, in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
D. Boral Capital LLC acted as the exclusive placement agent in connection with the SEPA.