Motif Bio aiming for $25m in transatlantic fundraise

Clinical stage biopharmaceutical company Motif Bio announced the pricing of its underwritten initial public offering of 2,438,491 American Depositary Shares and 1,219,246 warrants over ADSs on Friday, at a public offering price of $6.98 per ADS and warrant combination, before underwriting discounts and commissions.

The company has granted the underwriters in the US offering an option for a period of 30 days to purchase, at the public offering price less underwriting discounts and commissions, up to an additional 292,618 ADSs and warrants to purchase 146,309 ADSs to cover any over-allotments.

It said the US offering is conditional upon the placing of at least 20,000,000 ordinary shares together with 10,000,000 warrants over ordinary shares at a placing price per share and warrant combination of 28p in a European placement.

The company said it has received indications of interest from investors which would be sufficient to satisfy that condition, with the European placing will launching immediately following the announcement and a further announcement expected to confirm its completion later on Friday.

Each ADS represents 20 ordinary shares of Motif Bio, with the US offering and the European placing expected to raise $25m gross.

Investors will be allotted one ADS warrant for every two ADSs subscribed in the US offering, and one ordinary share warrant for every two ordinary shares subscribed in the European placing.

The ADS warrants and the ordinary share warrants have an exercise price of $8.03 and 32.2p respectively.

“The net proceeds of the fundraising are expected to be at least $20.5 million,” Motif Bio’s board said.

“The board believes that, along with the company's existing cash and cash equivalents, this sum will provide sufficient capital to fund the expenses to be incurred in conducting the two Phase 3 clinical trials of iclaprim for the treatment of ABSSSI, including the completion of the REVIVE-1 trial, working capital, general and administrative expenses, research and development expenses, and other general corporate purposes.”

It said that while the net proceeds of the Fundraising will provide sufficient capital to enable the company to complete the REVIVE-1 trial, it will require additional funds to complete the REVIVE-2 trial and plans to raise the additional capital through public or private financings and other partnering opportunities.