Axcella Enters Into Securities Purchase Agreement - Quick Facts

(RTTNews) - Axcella Therapeutics (AXLA) has entered into a securities purchase agreement with investors in a registered direct offering of 20,847,888 shares of common stock at a purchase price of $1.64 per share, resulting in gross proceeds of $34.2 million. The offering closed on October 13, 2022.

The company appointed Robert Rosiello and Torben Straight Nissen to its Board. Rosiello will become Chairman of the Board. Rosiello is an Executive Partner of Flagship Pioneering.

"We believe investors were attracted by results from our Phase 2a Placebo Controlled Clinical Trial for Long COVID and positive interim data from our Phase 2b study of NASH. In addition to strong support from our largest current investors, this round of financing also included five investors who are new to Axcella as well as certain Directors and members of management of the company," said Bill Hinshaw, CEO of Axcella.

Axcella plans to use the net proceeds together with existing cash and cash equivalents to advance the Long COVID program, including regulatory engagement and preparation for further clinical development; advance and complete enrollment of EMMPACT Phase 2b clinical trial in non-alcoholic steatohepatitis; and for working capital and other general corporate purposes.