AB Science Secures EUR 2.8 Million Funding for Drug Development
AB Science Successfully Completes a EUR 2.8 Million Funding Round
AB Science S.A. is thrilled to announce the successful completion of a capital increase amounting to EUR 2.8 million, achieved through a private placement with a select group of investors. This strategic move significantly boosts the company’s financial capabilities.
Funding to Propel AB8939 Clinical Trials
The funds raised from this private placement will primarily facilitate the company's ongoing activities, particularly focusing on the clinical development of the AB8939 program. AB8939 is a new synthetic drug designed to combat acute myeloid leukemia (AML). The immediate goal is to complete phase 1 in combination therapy while also launching an expansion study involving about 15 AML patients treated with AB8939 alongside Venetoclax, at the correct dosage.
Strategic Importance of the Expansion Phase
By entering the expansion phase, AB Science aims to gather robust preliminary evidence of efficacy in the AML indication, which is essential to support the subsequent registration trials. This targeted approach aligns well with the company’s vision of ensuring a higher chance of success for future registration studies.
Financial Position and Future Outlook
The completion of this funding round enhances AB Science’s cash position and provides the financial flexibility needed to address its operational expenditures throughout 2025 and beyond. This is a pivotal moment for the company as it strengthens its position in the pharmaceutical market, particularly within oncology.
Details of the Private Placement
The private placement involved the issuance of 2,477,877 new ordinary shares, each accompanied by a share warrant (BSA). This capital increase was conducted without the customary preferential subscription rights, a decision motivated by the urgency to expand operational capabilities swiftly. This move was sanctioned by the company’s board following the expressed will of the general meeting of shareholders.
Impact on Share Capital
With the completion of this capital increase, AB Science's total share capital will now amount to approximately EUR 729,474.72, translating into a fully diluted basis of share ownership, which ensures that existing shareholding structures are acknowledged during future transactions.
Cash Utilization Strategies
The net proceeds from this transaction are earmarked for funding critical activities. The company’s operational focus continues to hone in on the AB8939 clinical development program. By dedicating resources to this initiative, AB Science aspires to lead advancements in AML treatments that could benefit countless patients.
Future Trading of New Shares
The newly issued shares are set to be admitted to trading on the Paris regulated market. This trading is anticipated to start shortly, showcasing the company’s growing presence in the biotechnology sector.
Commitments and Timelines
As part of the funding agreement, the company has entered a lock-up period, ensuring investors are committed for at least 45 days post-transaction. This commitment reflects confidence in the company’s direction and the strategic decisions made by its leadership team.
About AB Science
Founded in 2001, AB Science specializes in the research and development of protein kinase inhibitors (PKIs). The company focuses on addressing high unmet medical needs in various fields, including oncology and inflammatory diseases. Noteworthy is the company's lead candidate, masitinib, which has established a track record within veterinary medicine and is making significant strides in human medical applications.
Prospects for Masitinib and AB8939
Masitinib represents a breakthrough in immunotherapy, designed to enhance patient survival outcomes, either alone or in conjunction with conventional chemotherapy. Similarly, AB8939 is being developed to overcome drug resistance, presenting new opportunities in oncology treatment landscapes.
Frequently Asked Questions
What is the purpose of the EUR 2.8 million raised?
The funds will primarily support the ongoing clinical development of the AB8939 program, particularly for AML treatments.
How will this funding affect the company’s operations?
The funding enhances AB Science’s financial stability and allows the company to advance its clinical trials and other operational activities effectively.
When will the new shares be available for trading?
The new shares are expected to start trading on the Paris regulated market soon, as part of standard operational procedures following the private placement.
What are the main goals of the AB8939 development program?
The main goals include completing phase 1 trials and initiating an expansion study to gather data supporting future registration for AML treatments.
What is the significance of the private placement for AB Science?
This private placement represents a critical step forward for AB Science, offering the necessary capital to pursue its strategic initiatives in treating significant medicinal conditions.
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