iBio Raises $50M Through Public Offering

iBio has priced a $50M public offering, including 71.54M pre-funded warrants and Series G and H warrants to purchase a total of 71.54M shares. Each unit, consisting of a pre-funded warrant, a Series G warrant, and a Series H warrant, is priced at $0.699. The offering aims to raise capital for the company's operations and expansion.

iBio Inc. (Nasdaq: IBIO), an AI-driven innovator in precision antibody therapies, has priced a $50 million public offering. The offering includes 71.54 million pre-funded warrants and accompanying Series G and H warrants, aiming to raise capital for the company's operations and expansion. Each unit, consisting of a pre-funded warrant, a Series G warrant, and a Series H warrant, is priced at $0.699 [1].

The offering comprises 71.54 million pre-funded warrants, which are immediately exercisable and function as equity with favorable terms for institutional investors. Additionally, there are 35.77 million Series G warrants and 35.77 million Series H warrants, each with an exercise price of $0.70 per share. If all warrants are exercised, iBio could receive an additional $50 million in gross proceeds [1].

iBio plans to use the proceeds to advance its preclinical cardiometabolic programs, including IBIO-610 and IBIO-600, and fund working capital requirements. The company's complex warrant structure reflects the need for sophisticated investors to provide additional upside potential to secure funding. The involvement of multiple investment banks, such as Leerink Partners as the lead bookrunner, LifeSci Capital, and Oppenheimer & Co., suggests institutional support [1].

The deal is expected to close on August 22, 2025, subject to customary closing conditions. The offering represents substantial dilution for existing shareholders, as it introduces up to 143 million additional shares if all warrants are exercised. However, the extended runway provided by this funding could carry the company through key development milestones [1].

Investors should recognize the significant dilution potential alongside the extended development runway this funding provides. The deal's expected closing on August 22 will provide much-needed capital, but investors should carefully consider the complex structure and potential dilution [1].

References:
[1] https://www.stocktitan.net/news/IBIO/i-bio-announces-pricing-of-50-million-public-l28xnu7dzci2.html