Connect Biopharma Announces $20.2 Million Private Placement Financing

Rhea-AI Summary

Connect Biopharma (Nasdaq: CNTB) agreed to sell 6,130,000 ordinary shares in a private placement at $3.25 per share, expected to raise gross proceeds of approximately $20.2 million.

The financing, led by Panacea Venture with Leerink Partners and Cantor as joint placement agents, is expected to close on or about March 31, 2026 and extend the company’s cash runway into the second half of 2027. Net proceeds will fund R&D, development programs, working capital and general corporate purposes.

Positive

• Gross proceeds of $20.2 million
• Funding extends cash runway into second half of 2027
• Led by largest investor Panacea Venture

Negative

• Issuance of 6,130,000 shares will dilute existing shareholders
• Placement agent fees and offering expenses will reduce net proceeds
• Resale subject to registration; lock-in until company files within 45 days

Key Figures

Shares issued: 6,130,000 shares Offering price: $3.25 per share Gross proceeds: $20.2 million +5 more

8 metrics

Shares issued 6,130,000 shares Ordinary shares in private placement

Offering price $3.25 per share Private placement share price

Gross proceeds $20.2 million Anticipated gross proceeds before fees

Runway extension into second half of 2027 Cash runway including this financing

Expected closing March 31, 2026 Target close date for private placement

Resale registration deadline 45 days after closing Deadline to file SEC resale registration statement

Lead investor holdings 12,000,000 shares Panacea Venture fund Form 3 position

Prior cash balance $54.8M Cash, equivalents, and short-term investments as of Sept 30, 2025

Market Reality Check

Price: $2.86 Vol: Volume 338,256 vs 20-day ...

high vol

$2.86 Last Close

Volume Volume 338,256 vs 20-day average 205,848 (relative volume 1.64x) indicates elevated trading interest pre-announcement. high

Technical Shares at $3.46 are trading above the 200-day MA of $2.08, despite a -6.5% move and being 9.42% below the 52-week high.

Peers on Argus

CNTB fell 6.5% while momentum-screened biotech peers ATRA and IFRX declined 2.83...

2 Down

CNTB fell 6.5% while momentum-screened biotech peers ATRA and IFRX declined 2.83% and 2.72% respectively. Scanner flags a stock-specific move rather than a sector-wide rotation.

Historical Context

5 past events · Latest: Mar 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 10	Phase 3 data update	Positive	+5.3%	Phase 3 rademikibart data supporting partner’s pending NDA in China.
Mar 03	Conference appearance	Neutral	-0.8%	Participation in Leerink Partners Global Healthcare Conference fireside chat.
Feb 19	Conference appearance	Neutral	-1.0%	Oppenheimer healthcare conference presentation and webcast availability.
Jan 12	Pipeline and cash update	Positive	-1.4%	New rademikibart mechanism data, 2026 clinical priorities, and runway into 2027.
Nov 24	Conference appearance	Neutral	-4.3%	Evercore healthcare conference fireside chat and webcast replay details.

Pattern Detected

Recent history shows modest moves on conference updates, a stronger positive reaction to major clinical data, and one divergence where positive R&D/cash news was met with a small decline.

Recent Company History

Over the last six months, CNTB has mixed reactions to news. A Mar 10 Phase 3 rademikibart update tied to a pending NDA in China saw shares gain 5.28%. Multiple conference participation notices (Evercore, Oppenheimer, Leerink) triggered small declines between -0.8% and -4.28%. A Jan 12 update highlighted new mechanism-of-action data, active asthma/COPD trials, and cash of $54.8M with runway into 2027, yet shares slipped -1.4%. Today’s financing extends that runway via additional capital.

Market Pulse Summary

This announcement details a private placement of 6,130,000 shares at $3.25, raising roughly $20.2M t...

Analysis

This announcement details a private placement of 6,130,000 shares at $3.25, raising roughly $20.2M to extend Connect Biopharma’s cash runway into the second half of 2027. The funds are earmarked for clinical-stage R&D, other development programs, and general corporate purposes. Historically, the stock has reacted modestly to non-clinical news. Key items to watch include closing on or about March 31, 2026 and timely filing of the resale registration statement within 45 days.

Key Terms

private placement, securities purchase agreement, institutional accredited investors, placement agents, +2 more

6 terms

private placement financial

"to sell 6,130,000 shares of its ordinary shares in a private placement at a price"

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

securities purchase agreement financial

"announced that it has entered into a securities purchase agreement with a select"

A securities purchase agreement is a written contract between a buyer and a seller outlining the terms for buying or selling financial assets such as stocks or bonds. It specifies details like the price, quantity, and conditions of the transaction, similar to a shopping list with agreed-upon terms. For investors, it provides clarity and legal protection when transferring ownership of these financial instruments.

institutional accredited investors financial

"agreement with a select group of institutional accredited investors to sell 6,130,000"

Large financial organizations—such as banks, pension funds, insurance companies, endowments and asset managers—that meet regulatory criteria based on size or experience to buy private, complex, or otherwise restricted securities. They matter to investors because their participation brings big pools of capital, often affects pricing and liquidity, and signals confidence or concern in an offering the way a well-known backer can sway public opinion about a new product.

placement agents financial

"Leerink Partners and Cantor are acting as joint placement agents to Connect"

Placement agents are professional intermediaries who help companies, investment funds or governments find and secure investors when selling stocks, bonds or private securities, acting like a matchmaker that introduces sellers to suitable buyers. For investors, the choice of placement agent matters because their network, reputation and negotiating skill affect who gets access, the price and the speed of a deal, and they can introduce conflicts or additional fees that influence returns.

registration statement regulatory

"Connect has agreed to file a registration statement with the U.S. Securities"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

prospectus regulatory

"Any offering of the securities under the resale registration statement will only be made by means of a prospectus."

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

AI-generated analysis. Not financial advice.

Funding from new and existing investors extends anticipated cash runway into the second half of 2027

SAN DIEGO, March 30, 2026 (GLOBE NEWSWIRE) -- Connect Biopharma Holdings Limited (Nasdaq: CNTB) (“Connect Biopharma,” “Connect” or the “Company”), a clinical-stage biopharmaceutical company focused on transforming care for the treatment of inflammatory diseases, today announced that it has entered into a securities purchase agreement with a select group of institutional accredited investors to sell 6,130,000 shares of its ordinary shares in a private placement at a price of $3.25 per share with respect to any purchaser that is not owned or controlled by an individual who is an officer, director, employee or consultant of the Company.

Connect anticipates the gross proceeds from the private placement will be approximately $20.2 million, before deducting placement agent fees and other offering expenses. The private placement is expected to close on or about March 31, 2026, subject to customary closing conditions.

The private placement was led by the Company’s largest current investor, Panacea Venture, with participation by other existing and new U.S.-based healthcare focused investors.

Leerink Partners and Cantor are acting as joint placement agents to Connect in connection with the private placement.

Connect intends to use the net proceeds from the proposed financing to fund the research and development of its clinical-stage product candidates and other development programs and for working capital and other general corporate purposes. The proceeds from this financing, combined with Connect’s existing cash, cash equivalents, and short-term investments, are expected to fund its current operations into the second half of 2027.

The securities to be sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. Connect has agreed to file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) registering the resale of the shares of ordinary shares issued in the private placement no later than the 45th day after the closing of the private placement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.

About Connect Biopharma
Connect Biopharma is a clinical-stage biopharmaceutical company dedicated to transforming care for asthma and COPD. Headquartered in San Diego, California, the Company is advancing rademikibart, a next-generation, potentially best-in-class antibody designed to target IL-4Rα. The Company is currently conducting global clinical studies of rademikibart for the treatment of acute exacerbations of asthma and COPD, areas with significant unmet need. Connect has granted an exclusive license to Simcere Pharmaceutical Co., Ltd., for rademikibart in Greater China. Under the exclusive license and collaboration agreement, Connect is eligible to receive remaining milestone payments up to an aggregate amount of approximately $110 million upon the achievement of certain development, regulatory and commercial milestones. Connect is also eligible to receive royalties at tiered percentage rates up to low double-digit percentages on net sales in Greater China.

Cautionary Note Regarding Forward-Looking Statements
Connect Biopharma cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. The forward-looking statements are based on our current beliefs and expectations and include, but are not limited to: the timing, size and expectation of the closing of the private placement; and expectations regarding market conditions, the satisfaction of customary closing conditions related to the private placement and the anticipated use of proceeds therefrom; and the Company’s expectation that its current cash, cash equivalents, and short-term investments will fund our operations into the second half of 2027. Such forward-looking statements involve substantial risks and uncertainties that could cause our actual results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by us that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties including, without limitation: the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the proposed financing; the ability to fund the Company’s operating plans with its cash, cash equivalents, and short-term investments, including the anticipated proceeds from the private placement; and other risks described in our prior filings with the SEC, including under the heading “Risk Factors” in our most recent annual report on Form 10-K, and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Investor Relations Contact:
Alex Lobo
Precision AQ
Alex.lobo@precisionaq.com
(212) 698-8802

Media Contact:
Ignacio Guerrero-Ros, Ph.D., or David Schull
Russo Partners, LLC
Ignacio.guerrero-ros@russopartnersllc.com
David.schull@russopartnersllc.com
(858) 717-2310 or (646) 942-5604

FAQ

How much is Connect Biopharma (CNTB) raising in the March 30, 2026 private placement?

The company expects to raise approximately $20.2 million in gross proceeds from the private placement. According to the company, the sale comprises 6,130,000 ordinary shares at $3.25 per share, before fees and expenses.

When will the CNTB private placement expected to close and who led it?

The private placement is expected to close on or about March 31, 2026. According to the company, the financing was led by Panacea Venture with Leerink Partners and Cantor as joint placement agents.

What will Connect Biopharma (CNTB) use the proceeds from the $20.2M financing for?

Proceeds will fund research and development, clinical programs, working capital, and general corporate purposes. According to the company, net proceeds are intended to support the development of its clinical-stage product candidates.

How does the financing affect Connect Biopharma's (CNTB) cash runway?

The financing, combined with existing cash and investments, is expected to fund operations into the second half of 2027. According to the company, this extends anticipated cash runway compared with current resources alone.

Will the private placement shares be immediately tradable for CNTB investors?

The shares were sold in an unregistered private placement and are not immediately tradable. According to the company, it will file a resale registration statement within 45 days after closing to permit resale.

What shareholder impacts should investors consider from CNTB's $3.25-per-share sale?

Investors should consider dilution from the issuance of 6,130,000 shares and reduced net proceeds after fees. According to the company, placement agent fees and offering expenses will be deducted from gross proceeds.