FibroBiologics Secures Second Tranche of $5 Million Financing

On December 30, 2024, FibroBiologics, Inc. (Nasdaq: FBLG) announced the successful closure of the second $5 million tranche of financing as part of its Standby Equity Purchase Agreement (SEPA) with YA II PN, LTD., an investment fund managed by Yorkville Advisors Global, LP. The company, a clinical-stage biotechnology firm focusing on developing therapeutics and potential cures for chronic diseases utilizing fibroblasts and fibroblast-derived materials, aims to sell up to $25 million of its common stock to Yorkville over a two-year period.

The SEPA involves three equal tranches of $15 million each that are to be funded by Yorkville through convertible promissory notes. The first $5 million tranche was funded upon the agreement’s signing, with the second $5 million tranche being disbursed after the submission of a registration statement covering the shares to be issued. The final $5 million tranche is expected to be funded after the registration statement becomes effective and shareholder approval is received, in adherence to Nasdaq regulations.

The funding obtained from this agreement is slated for general corporate purposes. D. Boral Capital LLC acted as the exclusive placement agent for this transaction.

Regarding forward-looking statements, FibroBiologics noted that these statements are based on management’s current expectations and involve known and unknown risks that could lead to actual results differing from those discussed in the forward-looking statements. Risks include liquidity challenges, unpredictable relationships between research and development outcomes, and the ability to meet conditions outlined in the SEPA.

FibroBiologics, headquartered in Houston, operates as a clinical-stage biotech company holding numerous US and international patents in various therapeutic areas, including disc degeneration, orthopedics, multiple sclerosis, wound healing, and cancer treatment.

For further details on the SEPA and its terms, interested parties are advised to refer to FibroBiologics’ filings with the Securities and Exchange Commission, which include Current Reports on Form 8-K submitted periodically.

The company has shared informative details on FibroBiologics’ official website and can be reached via email at info@fibrobiologics.com for additional information or inquiries related to the financing transaction. FibroBiologics emphasized that this communication does not constitute an offer to sell or a solicitation to buy any securities, and any such sales will align with legal regulations on registration or qualification under applicable securities laws.

This press release serves as a disclosure under Regulation FD (Fair Disclosure) practices and is intended for informational purposes only. It should not be considered as a formal filing with the Securities and Exchange Commission or as part of any other future regulatory submission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FibroBiologics’s 8K filing here.

About FibroBiologics

FibroBiologics, Inc operates as a cell therapy, regenerative medicine company. It is developing a pipeline of treatments and potential cures for chronic diseases using fibroblast cells and fibroblast-derived materials. It holds 150+ U.S. and internationally issued patents/patents pending across various clinical pathways, including disc degeneration, orthopedics, multiple sclerosis, psoriasis, wound healing, reversing organ involution, and cancer.