PaxMedica, Inc. Enters into Committed Capital Investment Agreement of up to $20 Million with Lincoln Park Capital
-Agreement Provides Flexible Funding on Path to NDA Submission for PAX-101-
TARRYTOWN, NY, Nov. 17, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – PaxMedica, Inc. (Nasdaq: PXMD), a clinical-stage biopharmaceutical company focused on the development of novel anti-purinergic (“APT”) drug therapies for the treatment of disorders with refractory neurological symptoms, today announced that the Company has entered into a purchase agreement and a recording rights agreement (together, the “Agreement”) for up to $20 million dollars with Lincoln Park Capital Fund, LLC (“Lincoln Park”).
Under the terms and conditions of the agreement, including the effectiveness of a related registration statement, the company has the right, but not the obligation, to sell up to $20 million of its stock. at Lincoln Park over a 30-month period, subject to certain limitations. Any common stock sold to Lincoln Park will take place at a purchase price which is determined by the prevailing market prices at the time of each sale with no upper limit than the price Lincoln Park can pay to purchase the common stock. The agreement contains no restrictions on the use of any of the products and there are no financial commitments, participation rights, rights of first refusal or penalties. There are no warrants, derivatives, financial or trading covenants associated with the Agreement and Lincoln Park has agreed not to cause or engage in any direct or indirect short selling or hedging of ordinary shares of the Company. The Company has issued common stock to Lincoln Park in consideration for Lincoln Park’s commitment to purchase the Company’s common stock under the Agreement. The Company intends to use the net proceeds from the sale of its common stock under the Agreement for working capital and general corporate purposes to support its growth.
Howard Weisman, Chief Executive Officer of PaxMedica, said, “This funding provides us with additional flexibility as we move towards completing intravenous suramin manufacturing validation in preparation for late 2023 NDA submission for the human african trypanosomiasis (brucei rhodesiense). The NDA, once submitted, should also trigger a Priority Review Voucher (PRV) request which the company plans to monetize upon receipt.
Further details regarding the agreement and this transaction will be contained in the current report on Form 8-K that the company intends to file with the Securities and Exchange Commission (the “SEC”).
This press release does not constitute an offer to sell or a solicitation of an offer to buy common stock, and there will be no sale of common stock in any state or jurisdiction in which such offer, solicitation or sale be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.
PaxMedica is a clinical-stage biopharmaceutical company focused on the development of anti-purinergic drug therapies (“APTs”) for the treatment of disorders with refractory neurological symptoms, ranging from neurodevelopmental disorders, including autism spectrum disorders (“APTs”). ASD”), myalgic encephalomyelitis. /Chronic Fatigue Syndrome (“ME/CFS”), a debilitating physical and cognitive disorder believed to be viral in origin and now increasing in incidence worldwide due to the long-term effects of SARS-CoV -2 (“COVID-19”). A major focus of PaxMedica is the development and testing of its lead program, PAX-101, an intravenous formulation of suramin, in the treatment of ASD and advancing the clinical understanding of the use of this agent against other disorders such as ME/CFS and Long COVID-19 Syndrome, a clinical diagnosis in people who have been previously infected with COVID-19.
This press release contains “forward-looking statements”. Forward-looking statements reflect our current view of future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections regarding future events that the Company believes could affect its financial condition, results of operations, business strategy and financial needs. Investors may identify these forward-looking statements by words or phrases such as “may”, “will”, “could”, “expect”, “anticipate”, “aim”, “estimate”, “have the intention to”, “plan”, “believe”, “is/are likely to”, “propose”, “potential”, “continue” or similar expressions. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will prove to be correct, and the Company cautions investors that actual results may differ materially from anticipated results and encourages investors to discuss other factors that could affect its future results in the company’s most recent registration statement and quarterly reports and other filings with the United States Securities and Exchange Commission.