Matinas BioPharma Welcomes New Board Member and Funding Deal

Introduction to Recent Developments at Matinas BioPharma

Matinas BioPharma Holdings, Inc. (NYSE American: MTNB) is making headlines with its latest announcement about a major agreement involving the acquisition of preferred stock and the appointment of a new board member. This strategic move promises to bolster the company's position as a leading biopharmaceutical entity focused on innovative health solutions.

Details of the Securities Purchase Agreement

The company has entered into a securities purchase agreement with a group of investors, allowing for the purchase of 3,300 shares of Series C Convertible Preferred Stock. This agreement includes warrants that give investors the potential to acquire up to 11,262,808 shares of common stock.

At an initial closing, investors successfully purchased 1,650 shares of the preferred stock, generating proceeds of $1.65 million. A second closing is contingent on stockholder approval, which will allow the company to receive an additional $1.65 million for the same number of shares and warrants.

The Mechanics of the Agreement

The shares of preferred stock are set to be convertible into common stock at a predefined price of $0.586. Notably, each preferred share can be converted into 1,706 shares of common stock. The accompanying warrants feature an exercise price of $0.6446 each and will become exercisable following shareholder approval, remaining valid for a period of five years.

The proceeds from this agreement are earmarked for general corporate needs, particularly aimed at lowering operating expenses and strategically advancing the development of MAT2203, a promising antifungal drug candidate.

Strategic Focus on MAT2203

Matinas BioPharma has positioned MAT2203 as a potential pivotal treatment for invasive fungal infections, offering a groundbreaking oral delivery alternative to existing intravenous therapies.

Overview of MAT2203

Traditional fungicidal agents, like amphotericin B, come with significant safety concerns, including renal toxicity and anemia, when administered intravenously. MAT2203's innovative lipid nanocrystal delivery technology aims to minimize these risks by providing targeted oral treatment, presenting a significant advancement in antifungal therapies.

Previous trials, including the Phase 2 EnACT study, have shown promising results, indicating that MAT2203 could play a crucial role in treating cryptococcal meningitis in HIV patients. The upcoming Phase 3 trial is expected to compare this oral therapy against standard care for patients suffering from invasive aspergillosis.

Appointment of Dr. Robin L. Smith

In a significant boost to the company’s leadership, Dr. Robin L. Smith has been appointed to the Board of Directors. Dr. Smith brings a wealth of experience as a medical doctor and business leader in the biopharmaceutical field.

Dr. Smith's Background and Impact

Having held various high-level roles across the industry, Dr. Smith has co-founded Spiritus Therapeutics and is an active player on multiple boards, including the International Board of Sanford Health. Her contributions to the field extend to numerous accolades and honors received for her leadership and innovations.

Dr. Smith holds degrees from prestigious institutions, including Yale University and the Wharton School of Business, fortifying her capability to guide Matinas through its next phase of growth effectively.

Acknowledgment of Leadership Changes

Alongside these promising developments, the company has announced the resignation of Herbert J. Conrad, the founding Chairman, who will be retiring from his position on the board after years of dedicated service. Matinas expresses its deep appreciation for Mr. Conrad’s leadership and contributions since the company's inception.

CEO Jerome D. Jabbour expressed enthusiasm about Dr. Smith’s appointment, highlighting her wealth of knowledge in medical and business realms, especially during this crucial period for Matinas BioPharma.

Looking Ahead

The company is committed to exploring additional strategic alternatives while managing costs during this transitional phase. Although the journey ahead may have uncertainties, Matinas BioPharma's leadership is optimistic about the potential outcomes of recent undertakings, including the approval processes kick-starting its proposed strategic directions.

Frequently Asked Questions

1. What recent agreement did Matinas BioPharma enter?

Matinas BioPharma entered a securities purchase agreement to sell preferred stock and warrants, totaling gross proceeds of $3.3 million.

2. Who is the new board member appointed?

Dr. Robin L. Smith has been appointed to the Board of Directors, bringing extensive experience in the biopharmaceutical industry.

3. What is MAT2203 and its significance?

MAT2203 is an innovative antifungal drug candidate that aims to provide an effective oral treatment for invasive fungal infections, overcoming limitations of existing therapies.

4. What are the intended uses of the funds from the agreement?

The funds are intended for general corporate purposes, particularly to reduce operating costs and advance strategic plans for MAT2203.

5. What does the future hold for Matinas BioPharma?

While exploring strategic alternatives, the company remains focused on reducing costs and advancing its product pipeline, particularly MAT2203.

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