Aileron Therapeutics Announces Closing of Underwritten Registered Direct Offering of up to Approximately $40 Million
May 03 2024 - 4:05PM
Aileron Therapeutics, Inc. (“Aileron”) (NASDAQ: ALRN), a
biopharmaceutical company advancing a novel pipeline of
first-in-class medicines to address significant unmet medical needs
in orphan pulmonary and fibrosis indications, today announced the
closing of its previously announced underwritten registered direct
offering priced at-the-market under Nasdaq rules of 4,273,505
shares of its common stock and accompanying warrants to purchase an
aggregate of 4,273,505 shares of common stock. Each share of common
stock and accompanying warrant were sold together at a combined
public offering price of $4.68. The aggregate gross proceeds of the
offering were approximately $20 million, before deducting
underwriting discounts and commissions and other offering expenses
payable by Aileron, and excluding any proceeds that may be received
from exercise of the warrants.
The accompanying warrants have an exercise price of $4.68 per
share, are exercisable immediately and expire three years from the
date of issuance. Aileron may call the warrants for cancellation
during the ten trading day period after the date that is thirty
(30) days following the public announcement by Aileron of the
top-line results from the Phase 1b clinical trial of LTI-03 in
patients with idiopathic pulmonary fibrosis, which announcement
includes a statement that there were no drug-related adverse events
that resulted in a discontinuation of the trial; provided that
Aileron may only deliver such call notice if the volume-weighted
average price of its shares of common stock exceeds the exercise
price of the warrants on the trading day immediately prior to the
date it delivers the call notice. Any warrant subject to such call
for which a notice of exercise is not received will be cancelled
ten trading days after the date of the call notice for
consideration equal to $0.001 per warrant share.
Titan Partners Group, a division of American Capital Partners,
acted as sole book-running manager for the offering.
The securities were offered pursuant to a shelf registration
statement on Form S-3 (File No. 333-265470) that was previously
filed with and declared effective by the Securities and Exchange
Commission (SEC) on June 16, 2022. The offering was made only by
means of a prospectus supplement and the accompanying prospectus
that form a part of the registration statement. A final prospectus
supplement relating to the offering was filed with the SEC and may
be obtained for free by visiting the SEC’s website at www.sec.gov.
Copies of the final prospectus supplement and the accompanying
prospectus may also be obtained for free by contacting Titan
Partners Group LLC, a division of American Capital Partners, LLC, 4
World Trade Center, 29th Floor, New York, NY 10007, by phone at
(929) 833-1246 or by email at prospectus@titanpartnersgrp.com.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of
these securities, in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful, prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Aileron Therapeutics
Aileron Therapeutics is a biopharmaceutical company advancing a
pipeline of first-in-class medicines to address significant unmet
medical needs in orphan pulmonary and fibrosis indications.
Aileron’s lead product candidate, LTI-03, is a novel, synthetic
peptide with a dual mechanism targeting alveolar epithelial cell
survival as well as inhibition of profibrotic signaling. Currently,
LTI-03 is being evaluated in a Phase 1b clinical trial for the
treatment of idiopathic pulmonary fibrosis. Aileron’s second
product candidate, LTI-01, is a proenzyme that has completed Phase
1b and Phase 2a clinical trials for the treatment of loculated
pleural effusions. LTI-01 has received Orphan Drug Designation in
the US and EU and Fast Track Designation in the US.
Forward-Looking Statements
Any statements in this press release about future expectations,
plans, and prospects for the Company, including any proceeds to be
received upon exercise of the warrants, and other statements
containing the words “anticipate,” “believe,” “estimate,” “expect,”
“intend”, “goal,” “may”, “might,” “plan,” “predict,” “project,”
“target,” “potential,” “will,” “would,” “could,” “should,”
“continue,” and similar expressions, constitute forward-looking
statements within the meaning of The Private Securities Litigation
Reform Act of 1995. Actual results may differ materially from those
indicated by such forward-looking statements as a result of various
important factors. Such forward-looking statements involve
substantial risks and uncertainties that could cause Aileron’s
clinical development programs, future results, performance or
achievements to differ significantly from those expressed or
implied by the forward-looking statements. Such risks and
uncertainties include, among others, uncertainties related to
market conditions and uncertainties as to the exercise of the
warrants issued in the offering, as well as the risks and
uncertainties discussed in the “Risk Factors” section of the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023, which is on file with the Securities and Exchange
Commission and in subsequent filings that Aileron files with the
Securities and Exchange Commission. These forward-looking
statements should not be relied upon as representing the Company’s
view as of any date subsequent to the date of this press release,
and we expressly disclaim any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Investor Relations & Media Contact:
Argot Partnersaileron@argotpartners.com212-600-1902
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