WALTHAM, Mass., Aug. 28, 2020 (GLOBE NEWSWIRE) -- Entasis Therapeutics Holdings Inc. (NASDAQ:ETTX) (“Entasis”), a clinical-stage biopharmaceutical company focused on the discovery and development of novel antibacterial products, announced today it has entered into a definitive agreement to sell securities in a private placement with Innoviva, Inc. (NASDAQ:INVA), a company with a portfolio of royalties, and another healthcare-focused institutional investor. The gross proceeds to the Company from the private placement, before deducting the placement agent's fees and other estimated offering expenses payable by the Company, are expected to be approximately $25 million.
The Company intends to use the net proceeds from the private placement for the continued support of the ongoing ATTACK Phase 3 registration clinical trial as well as for working capital and other general corporate purposes. ATTACK is a global two-part Phase 3 registration trial evaluating SUL-DUR for the treatment of patients with pneumonia and bloodstream infections caused by carbapenem-resistant Acinetobacter baumannii.
Pursuant to the terms of the securities purchase agreement, the Company will issue 9,345,794 units at a price of $2.675 per unit. Each unit consists of approximately one share of common stock and a warrant to purchase one share of common stock at an exercise price of $2.675. Certain investors may elect to receive pre-funded warrants to purchase common stock in lieu of a portion of their common stock. The private placement is expected to close on or about September 1, 2020, subject to the satisfaction of customary closing conditions.
Cantor Fitzgerald & Co. is acting as the lead placement agent for the private placement. A.G.P./Alliance Global Partners is also acting as a placement agent.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities. The securities to be sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and accordingly may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. Entasis has agreed to file a registration statement with the United States Securities and Exchange Commission registering the resale of the securities issued in the private placement. Any offering of the securities under such resale registration statement will only be by means of a prospectus.