iBio Announces Closing of $50 Million Public Offering with Potential for $100 Million Total Gross Proceeds

iBio has closed a $50 million public offering, led by Balyasny Asset Management and including participation from Cormorant Asset Management and others. The offering was for pre-funded warrants and common stock warrants to purchase shares of iBio's common stock, with a combined public offering price of $0.699 per share. If all Series G and H warrants are exercised, iBio could receive an additional $50 million in gross proceeds, for a total of $100 million.

iBio, Inc. (Nasdaq: IBIO), an AI-driven innovator in precision antibody therapies, has successfully closed its public offering, raising $50 million in gross proceeds. The offering included pre-funded warrants and common stock warrants to purchase shares of iBio's common stock, with a combined public offering price of $0.699 per share [1].

The financing involved the issuance of pre-funded warrants to purchase 71,540,000 shares and accompanying Series G and H warrants. If all warrants are exercised, iBio could receive an additional $50 million in gross proceeds, bringing the total potential gross proceeds to $100 million [1].

The offering was led by Balyasny Asset Management with participation from several prominent investors, including Cormorant Asset Management and Adage Capital Partners. The proceeds will be used to advance iBio's preclinical cardiometabolic programs, including IBIO-610 and IBIO-600, through key development milestones [1].

The Series G warrants are linked to a Trial Initiation Milestone and will expire either 30 trading days after the milestone announcement or five years from issuance, while Series H warrants have a four-year term. The involvement of multiple specialized healthcare investors suggests thorough due diligence was conducted on iBio's technology platform and pipeline potential before this substantial capital commitment [1].

iBio intends to use the net proceeds from the offering to advance its preclinical cardiometabolic programs, particularly IBIO-610 (a myostatin and activin A bispecific antibody) and IBIO-600, through key development milestones. The timing of the financing suggests the company is preparing for potential IND filings, as evidenced by the Series G warrant structure being tied to clinical trial authorization milestones [1].

This financing should give iBio sufficient capital to reach key development inflection points that could significantly increase its valuation if successful. The warrant structure is notably complex, indicating sophisticated financial engineering designed to maximize capital while balancing shareholder dilution concerns [1].

References:
[1] https://www.stocktitan.net/news/IBIO/i-bio-announces-closing-of-50-million-public-jyld41giw3el.html