Clene Secures $7.3 Million in Funding to Advance ALS Treatment
TL;DR
Clene (NASDAQ: CLNN) closed a $7.3 million offering with potential for additional capital through future warrant exercises, giving an advantage to investors.
The offering consists of common stock and warrants, providing a methodical structure for raising capital and enabling the company to fund itself while in discussions with the FDA.
The financing enables people with ALS who currently take CMN-Au8 under compassionate use programs to continue receiving drug, making tomorrow better for patients in need.
CNM-Au8 is an investigational, first-in-class therapy that targets mitochondrial function and the NAD pathway, offering an interesting approach to treating neurodegenerative diseases.
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Clene Inc. (NASDAQ: CLNN), a biopharmaceutical company focused on neurodegenerative diseases, has successfully closed a $7.3 million financing round through a combination of a registered direct offering and concurrent private placements. The funding, which includes participation from both a healthcare-focused institutional investor and existing shareholders, comes at a critical time as the company prepares for potential discussions with the FDA regarding an NDA filing under the accelerated approval pathway for its ALS treatment.
The financing deal, consisting of common stock and warrants, not only provides immediate capital but also opens the possibility for additional funding through future warrant exercises. This influx of resources is vital for Clene's ongoing research and development efforts, particularly in advancing its lead candidate, CNM-Au8, for the treatment of amyotrophic lateral sclerosis (ALS).
In conjunction with the new funding, Clene has amended its existing debt facility with Avenue Venture Opportunities Fund, L.P., securing a debt principal deferral. This strategic move, combined with the fresh capital, strengthens the company's financial position as it navigates the crucial phase of regulatory discussions and potential NDA filing by year-end.
The significance of this funding extends beyond the company's immediate financial needs. It ensures the continuation of Clene's compassionate use programs, allowing ALS patients currently benefiting from CMN-Au8 to maintain access to the investigational therapy. This aspect of the financing underscores the potential impact of Clene's work on patients' lives and highlights the urgency of advancing potential treatments for neurodegenerative diseases.
As Clene progresses towards potential regulatory milestones, this financial boost positions the company to potentially accelerate its development timeline and maintain its commitment to improving mitochondrial health and neuronal function in patients with ALS and other neurodegenerative conditions. The support from both new and existing investors signals confidence in Clene's approach and the potential of its CNM-Au8 therapy to address significant unmet needs in the treatment of ALS.
Curated from InvestorBrandNetwork (IBN)
