Biostage Inc (OTCMKTS:BSTG) Stock On Radar After Financing News
Cell-therapy biotechnology company, Biostage Inc (OTCMKTS:BSTG) on April 6, 2023, announced entering into purchase agreements for raising about $6 million from existing and new investors in a private placement of shares of common stock.
Biostage Announces $6 Million Financing to Advance Clinical Trial
Biostage has a reputation for having achieved first-in-human experience in treating esophageal cancer as well as FDA approval for starting a clinical trial of the Biostage Esophageal Implant. The funds raised would be utilized for augmenting the clinical development of its lead product candidate, the Biostage Esophageal Implant.
Biostage’s Chief Executive Officer and Chairman, Jerry expressed delight in welcoming the fresh strategic investors. Jerry also expressed gratitude to existing investors for their support and hopes to implement the plan for clinical trials and development.
The FDA has given consent to a ten-patient phase one as well as phase two clinical trials for studying the repair of damage to esophagus in adults due to cancer or injury. The regulatory body indicated eagerness for the expansion of the clinical trial to include pediatric subjects having birth defects.
In March 2023, the firm entered into Securities Purchase Agreements with some investors, after which investors accepted buying private placement of 1,000,967 shares of common stock. The firm got about $3.6 million in gross proceeds from the Private Placement through April 5, 2023. It is expecting to get the balance subscription amounts for an aggregate of $2.4 million.
