ASLAN Pharmaceuticals To Raise Capital Worth USD 20M By Sale of Shares

ASLAN Pharmaceuticals entered into a definitive purchase agreement with BVF Partners, K2 Health Ventures, and certain existing investors to raise gross proceeds of $20 million through the sale of shares (112.3M shares equivalent to 22.5M ADSs at an equivalent price of $0.89/ADS) and accompanying purchase warrants at a purchase price of $0.178/share. If all purchase warrants issued in connection with the purchase agreement are fully exercised, the company could receive an additional $80 million.

"The financial support from such prominent specialist investors is a strong endorsement of both eblasakimab's potential as a novel, differentiated therapeutic for patients with atopic dermatitis and farudodstat's potential as a potent next-generation oral inhibitor of DHODH in autoimmune skin disease," said CEO Dr Carl Firth. The financing is expected to be completed on or around February 27, 2023. The net proceeds will be used for working capital and general corporate purposes, including eblasakimab and farudodstat clinical development. Premarket, shares are trading 10.6% higher.