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Avalo Therapeutics | 8-K: Current report

SEC announcement ·  Mar 28 06:14
Summary by Moomoo AI
On March 27, 2024, Avalo Therapeutics, Inc. announced the completion of a strategic acquisition and a significant private placement financing. The company acquired AlmataBio, Inc., a biotechnology firm with a Phase 2-ready anti-IL-1β monoclonal antibody, AVTX-009, aimed at treating inflammatory diseases. The acquisition was a stock-for-stock transaction valued at approximately $15 million. Concurrently, Avalo entered into a securities purchase agreement with institutional investors for a private placement financing of up to $185 million, with an initial investment of $115.6 million. The proceeds are expected to extend Avalo's cash runway into 2027 and will be used for milestone payments to Almata stockholders and general corporate purposes. The private placement is expected to close on March 28, 2024. As part of the agreement, Avalo issued 171,605 shares...Show More
On March 27, 2024, Avalo Therapeutics, Inc. announced the completion of a strategic acquisition and a significant private placement financing. The company acquired AlmataBio, Inc., a biotechnology firm with a Phase 2-ready anti-IL-1β monoclonal antibody, AVTX-009, aimed at treating inflammatory diseases. The acquisition was a stock-for-stock transaction valued at approximately $15 million. Concurrently, Avalo entered into a securities purchase agreement with institutional investors for a private placement financing of up to $185 million, with an initial investment of $115.6 million. The proceeds are expected to extend Avalo's cash runway into 2027 and will be used for milestone payments to Almata stockholders and general corporate purposes. The private placement is expected to close on March 28, 2024. As part of the agreement, Avalo issued 171,605 shares of common stock and 2,412 shares of Series C Preferred Stock to Almata stockholders. Additionally, Avalo will make milestone payments totaling $27.5 million in cash or stock upon the achievement of certain development milestones for AVTX-009. Jonathan Goldman was appointed to Avalo's Board of Directors upon closing of the merger, with Samantha Truex and Aaron Kantoff expected to join the board following the financing transaction. The acquisition and financing were approved by Avalo's Board of Directors and do not require approval from Avalo stockholders.

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