ABVC BioPharma, Inc. (NASDAQ: ABVC) has closed a private placement of original issue discount senior convertible promissory notes with institutional and accredited investors, raising gross proceeds of approximately $3.39 million before placement agent fees and offering expenses, according to the company’s announcement.
The notes carry a 17.5% original issue discount, an aggregate principal amount of $4,106,060, and a maturity date of June 30, 2027. They become convertible eight months after issuance into common stock at 85% of the average of the three volume-weighted average prices for the three trading days immediately prior to conversion, subject to a floor price and adjustments. The securities are not registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption.
The financing matters because it addresses both immediate liquidity and a lingering obligation. ABVC said it expects to use net proceeds for general working capital, funding of its subsidiaries, and a $625,000 settlement payment to Lind Global Fund II LP under a definitive release and settlement agreement. That payment is expected to satisfy specified outstanding payment claims and support the company’s ability to pursue broader financing and business development initiatives.
The offering also fits ABVC’s stated strategy of advancing its pharmaceutical and medical-device portfolio through strategic licensing, subsidiary development, and independent financing. The company has established dedicated platforms across its principal development areas: AiBtl BioPharma Inc. for central nervous system drug programs, OncoX BioPharma for oncology, ForSeeCon Eye for ophthalmic medical-device development and commercialization, and BioKey (Cayman), Inc. for contract pharmaceutical development and manufacturing services and its AI Biotechnology Innovation Platform.
For investors, the convertible structure introduces potential dilution because the notes convert into shares at a discount to recent market prices, though the floor price may limit that effect. The eight-month conversion waiting period also delays potential share issuance. For the industry, the deal illustrates how clinical-stage biopharmaceutical companies are using structured private placements to bridge funding needs while trying to preserve flexibility for separate subsidiary financing.
ABVC continues to evaluate potential strategic financing and capital-market opportunities for its affiliated businesses to support long-term development and commercialization objectives. WallachBeth Capital, Inc. acted as placement agent. Hunter Taubman Fischer & Li LLC acted as legal counsel to the company, and Sichenzia Ross Ference Carmel LLP acted as counsel to the placement agent. Additional details will be available in the company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.
The original release is available through www.newmediawire.com, and the announcement was distributed by NEWMEDIAWIRE.
