Date: Jan 14, 2014 Author: Dan Miner Source: bizjournals (
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Dan Miner, Reporter- Business First
Cash-needy Cleveland BioLabs Inc. announced Tuesday it sold about $7 million of its common stock to two investors at $1.22 per share.
The investors were not immediately identified by Cleveland BioLabs, the Buffalo Niagara Medical Campus company whose drugs have raised the potential for treatment against certain types of cancer and the effects of radiation.
Closing of the offering is expected to take place around Jan. 16. H.C. Wainwright & Co. LLC acted as exclusive placement agent and Cantor Fitzgerald & Co. acted as financial officer.
Buffalo-based BioLabs has undergone a steady stream of quarterly losses recently, including $4.1 million in the third quarter, compared to a $10.9 million loss in the same period the year before.
The company secured a $10 million loan with a specialty finance company in October — with $4 million of that contingent upon approval of a development contract from the Biomedical Advanced Research and Development Authority or other funding to support the development of Entolimod, the company's most advanced pharmaceutical candidate.
Cleveland BioLabs has spent the last year reconfiguring itself as a company ready to take a drug to market, and recently shifted its laboratory and preclinical personnel to a separate entity, Buffalo BioLabs.
Its shares (NASDAQ: CBLI) are currently selling at $1.21. The company's fourth quarter filing is expected in the first half of February.
