LA JOLLA, Calif., May 7, 2019 /PRNewswire/ -- Regulus
Therapeutics Inc. (Nasdaq: RGLS), a biopharmaceutical company
focused on the discovery and development of innovative medicines
targeting microRNAs, today announced the closing of the first
tranche of its previously announced private placement of equity.
The Company received gross proceeds of approximately
$16.7 million from the sale of
9,730,534 shares of the Company's common stock ("Common Stock") and
accompanying warrants to purchase up to an aggregate of 9,730,534
shares of common stock at a combined purchase price of $1.205 per share. In addition, the Company
sold 415,898 shares of non-voting Class A-1 convertible preferred
stock, in lieu of shares of Common Stock, at a price of
$10.80 per share, and accompanying
warrants to purchase an aggregate of 4,158,980 shares of Common
Stock at a price of $0.125 for each
share of Common Stock underlying these warrants. Each share
of non-voting Class A-1 convertible preferred stock is convertible
into 10 shares of Common Stock, subject to certain beneficial
ownership conversion limitations. The Company expects to use
the proceeds from the transaction primarily to advance RGLS4326 for
the treatment of ADPKD, to advance select programs from its
pipeline of microRNA therapies and for general corporate purposes.
H.C. Wainwright and Co. acted as exclusive placement agent
for the financing.
Subject to the Company's public announcement on or
before December 31, 2019 of its plan to recommence the
Phase 1 multiple ascending dose clinical trial of RGLS4326 based
upon correspondence from FDA (the "Public Announcement"),
the investors who purchased securities in the first tranche of the
private financing have agreed to purchase shares of non-voting
convertible preferred stock and accompanying warrants to purchase
shares of Common Stock in a second closing ("Milestone Closing"),
subject to certain closing conditions. If the Milestone
Closing occurs, the gross proceeds to the Company from that closing
will be approximately $25.1 million.
The offer and sale of the foregoing securities were made or will
be made in a transaction not involving a public offering and have
not been registered under the Securities Act of 1933, as amended
(the "Securities Act"), or applicable state securities laws.
Accordingly, the securities may not be reoffered or resold in
the United States except pursuant
to an effective registration statement or an applicable exemption
from the registration requirements of the Securities Act and such
applicable state securities laws.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be
any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state.
About Autosomal Dominant Polycystic Kidney Disease
(ADPKD)
ADPKD, caused by the mutations in the PKD1 or PKD2 genes, is
among the most common human monogenic disorders and a leading cause
of end-stage renal disease. The disease is characterized by the
development of multiple fluid filled cysts primarily in the
kidneys, and to a lesser extent in the liver and other organs.
Excessive kidney cyst cell proliferation, a central pathological
feature, ultimately leads to end-stage renal disease in
approximately 50% of ADPKD patients by age 60. It is estimated that
approximately 1 in 1,000 people bear a mutation in either PKD1
or PKD2 genes worldwide.
About RGLS4326
RGLS4326 is a novel oligonucleotide designed to inhibit miR-17
and designed to preferentially target the kidney. Preclinical
studies with RGLS4326 have demonstrated direct regulation of PKD1
and PKD2 in human ADPKD cyst cells, a reduction in kidney cyst
formation, improved kidney weight/body weight ratio, decreased cyst
cell proliferation, and preserved kidney function in mouse models
of ADPKD.
About Regulus
Regulus Therapeutics Inc. (Nasdaq: RGLS) is a biopharmaceutical
company focused on the discovery and development of innovative
medicines targeting microRNAs. Regulus maintains its
corporate headquarters in La
Jolla, CA.
Forward-Looking Statements
Statements contained in this press release regarding matters
that are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements associated with the anticipated use
of proceeds from the private financing as well as the timing, size
and completion of the Milestone Closing. Because such
statements are subject to risks and uncertainties, actual results
may differ materially from those expressed or implied by such
forward-looking statements. Words such as "believes,"
"anticipates," "plans," "expects," "intends," "will," "goal,"
"potential" and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
based upon Regulus' current expectations and involve assumptions
that may never materialize or may prove to be incorrect.
Actual results and the timing of events could differ materially
from those anticipated in such forward-looking statements as a
result of various risks and uncertainties, which include, without
limitation, risks associated with the process of discovering,
developing and commercializing drugs that are safe and effective
for use as human therapeutics and in the endeavor of building a
business around such drugs, feedback from the FDA and market
conditions. These and other risks concerning Regulus'
financial position and programs are described in additional detail
in Regulus' filings with the Securities and Exchange
Commission. All forward-looking statements contained in this
press release speak only as of the date on which they were made.
Regulus undertakes no obligation to update such statements to
reflect events that occur or circumstances that exist after the
date on which they were made.
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SOURCE Regulus Therapeutics Inc.