Biotechnology firm Azitra (AZTR, Financial) has secured a financial partnership with institutional investor Alumni Capital LP through a new share purchase agreement. This strategic move is expected to supply Azitra with a flexible funding mechanism aimed at advancing its portfolio of topical live biotherapeutic products. These products are designed for treating a range of rare and severe dermatological conditions.
With a focus on combating diseases such as Netherton Syndrome and rashes associated with EGFRi, which affect around 150,000 individuals in the U.S., Azitra is poised to reach significant clinical milestones. The agreement allows Azitra to minimize dilution and enhance shareholder value by carefully planning the timing and magnitude of equity sales, aligning with its strategic development goals.
Under the terms of this agreement, Azitra can sell up to $20 million in common stock and purchase warrants over a 20-month timeframe. Alumni Capital is obligated to purchase these shares, with prices determined by the prevailing market rates at the time of each transaction. Crucially, Azitra maintains control over when and how much stock is sold, under the conditions stipulated in the agreement.
