Arix Bioscience (ARIX) , the biotech venture capital company, pledged $1.9 million (£1.5 million) as part of a $51.9 million private placement in NASDAQ-listed Iterum Therapeutics.
The investment will add to Arix’s 7.3% stake in Iterum, which was valued at $4.9 million (£3.7 million) a day before the announcement of the private placement.
Iterum Therapeutics develops oral and IV antibiotics to treat infections caused by multi-drug resistant pathogens.
Shares in Arix Bioscience were trading flat at 96.5p during Friday afternoon trading
Iterum told investors that the proceeds from the placement will fund continued clinical development of sulopenem, the management of regulatory filings and general working capital.
The securities purchase agreement is to be led by Sarissa Capital Management LP, with new and existing investors, which include RA Capital Management and entities affiliated with certain Iterum board members.
Iterum is selling $51.9 million of 6.5% exchangeable senior notes, and $0.1 million in royalty-linked senior notes.
The agreement is expected to close within five business days of the execution date.
Follow News & Updates from Arix Bioscience here: