The shares of Zura Bio Limited (NASDAQ: ZURA) are currently witnessing a remarkable surge, demonstrating a significant increase of 20.17% during the current trading session, reaching a value of $4.35. This substantial uptrend in the price of ZUR stock follows recent equity actions, as there is no immediate discernible catalyst directly responsible for this surge.

Last week, Zura Bio (ZURA) entered into subscription agreements for a private placement anticipated to generate gross proceeds of around $112.5 million, before factoring in placement agent fees and offering expenses. This Private Placement is spearheaded by Access Biotechnology and a prominent institutional investor specializing in life sciences, with participation from other new and existing investors.

Notable participants include Deep Track Capital, RA Capital Management, Great Point Partners, LLC, Suvretta Capital, funds managed by Allostery Investments LP, Armistice Capital, and other significant investment management entities.

Zura Bio has agreed to sell about 20.1 million Class A ordinary shares at a price per share of $3.108 under the terms of the deal. Additionally, for some investors, the company will purchase pre-funded warrants that can be used to buy up to 16.1 million Class A ordinary shares at a price per warrant of $3.107.

Pre-funded warrants are instantly exercisable and will remain so until they are completely exercised. The exercise price of each warrant is $0.001 per common share. The Private Placement is being executed in compliance with relevant Nasdaq regulations and has been priced to meet the "Minimum Price" stipulation.

The closure of the private placement is expected on April 22, 2024, subject to customary closing conditions being met. The expected proceeds from the private placement are intended to bolster the expedited development of tibulizumab (ZB-106).

This encompasses the planned Phase 2 clinical trial in systemic sclerosis (SSc), the commencement of a Phase 2 trial assessing tibulizumab for the treatment of hidradenitis suppurativa (HS), and general corporate undertakings. The combination of projected net proceeds with existing cash reserves is anticipated to sustain operations through 2027.