Clinical stage biopharma Clene (NASDAQ: CLNN) has closed an underwritten public offering of common stock and warrants with total gross proceeds of $40 million. The company, which focuses on the treatment of neurodegenerative diseases, says that the offering may provide up to an additional potential $130.8 million in proceeds through future warrant exercises with accelerated expiration dates tied to satisfaction of regulatory milestones.
Clene targets energetic failure, an underlying cause of many neurological diseases. Its lead program, CNM-Au8, is an oral suspension of gold nanocrystals developed to restore neuronal health and function by increasing energy production and use.
The new financing is expected to fund Clene through the potential accelerated approval of CNM-Au8, pending guidance from the FDA, and early commercialization of CNM-Au8, if approved. The financing was led by Vivo Capital with participation from SymBiosis, Acuta Capital Partners, AIGH Capital, Serrado Capital LLC and other new biotech investors with support from existing insiders.
“We are grateful for the support of both our biotech investors as well as existing shareholders, and, more importantly, their belief in the path to approval for CNM-Au8,” said David Matlin, Chairman of the Board at Clene. “We look forward to utilizing the capital raised in this offering to accelerate regulatory discussions and submissions with the FDA together with planning and preparation for commencing a global Phase 3 ALS clinical trial.”
We spoke to Clene’s CEO Rob Etherington when the company went public last year.
“What we’re hoping to show in humans is exactly what we’ve already shown in animals, and that is an ability to promote neuronal repair, neural protection and remyelination,” he told us. “When the clinical studies wrap up, it is our hope to show that we can potentially reverse disease for patients with amyotrophic lateral sclerosis, multiple sclerosis and Parkinson’s disease.”