FibroBiologics Closes Third $5 Million Tranche of $25 Million Financing

Rhea-AI Summary

FibroBiologics (NASDAQ: FBLG) has successfully closed the third $5 million tranche of its previously announced $25 million Standby Equity Purchase Agreement (SEPA) with Yorkville Advisors. This represents the final portion of the initial $15 million commitment structured through convertible promissory notes. The company has the potential to sell an additional $10 million in common stock to Yorkville, subject to conditions. FibroBiologics, a clinical-stage biotech company with 275+ patents, plans to use the proceeds for general corporate purposes, including funding R&D programs and supporting an upcoming Phase 1/2 diabetic foot ulcer clinical trial scheduled for the second half of 2025.

Positive

• Secured final $5M tranche of initial $15M commitment, demonstrating continued investor confidence
• Additional $10M in potential funding available through the SEPA agreement
• Strong intellectual property portfolio with 275+ patents issued and pending
• Proceeds will support upcoming Phase 1/2 clinical trial for diabetic foot ulcer treatment

Negative

• Funding through convertible promissory notes may lead to potential dilution for existing shareholders
• Additional $10M funding subject to Yorkville's consent and other conditions, creating uncertainty

Insights

Biotech Investment Specialist

FibroBiologics secured third $5M tranche of financing, strengthening financial position ahead of clinical trials and advancing R&D efforts.

FibroBiologics has successfully closed the third $5 million tranche of its previously announced $25 million Standby Equity Purchase Agreement (SEPA) with Yorkville Advisors. This represents a significant milestone as the company has now secured $15 million in total funding through this agreement, with potential for an additional $10 million subject to certain conditions.

The financing structure is noteworthy - Yorkville has advanced the first $15 million in three equal tranches evidenced by convertible promissory notes. Each tranche was released upon meeting specific conditions: the first upon entry into the SEPA, the second after filing a registration statement for resale shares, and this third tranche following effectiveness of the registration statement and shareholder approval to satisfy Nasdaq requirements.

This capital infusion comes at a critical juncture for FibroBiologics, which has an impressive portfolio of 275+ patents issued and pending. The proceeds will primarily support their research and development programs and fund their upcoming Phase 1/2 diabetic foot ulcer clinical trial expected in H2 2025. For a clinical-stage biotech company focused on fibroblast-based therapeutics for chronic diseases, securing this funding provides essential runway to advance their pipeline through critical development stages.

While this financing strengthens their financial position, investors should note that as with many biotech companies, FibroBiologics faces typical industry risks including clinical trial outcomes, regulatory hurdles, and ongoing capital requirements. The fact that they've successfully closed all three initial tranches demonstrates investor confidence in their approach and technology platform, though future capital needs will likely depend on clinical progress and regulatory developments.

HOUSTON, June 16, 2025 (GLOBE NEWSWIRE) -- FibroBiologics, Inc. (Nasdaq: FBLG) (“FibroBiologics”), a clinical-stage biotechnology company with 275+ patents issued and pending with a focus on the development of therapeutics and potential cures for chronic diseases using fibroblasts and fibroblast-derived materials, today announced it has closed the third $5 million tranche of the previously announced Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, Ltd. (“Yorkville”), an investment fund managed by Yorkville Advisors Global, LP. The agreement allows FibroBiologics, subject to customary conditions, to sell up to $25 million in the aggregate of its common stock to Yorkville over the course of two years.   

Yorkville agreed to advance to FibroBiologics the first $15 million available under the SEPA in three equal tranches to be evidenced by convertible promissory notes. The first tranche in the amount of $5 million was funded upon entry into the SEPA and the second tranche of $5 million was funded after the filing of a registration statement covering the resale of the shares issuable to Yorkville under the promissory notes. The third tranche of $5 million was funded following the effectiveness of the registration statement and receipt of shareholder approval in satisfaction of certain Nasdaq rules. FibroBiologics can sell an additional $10 million of its common stock to Yorkville, subject to Yorkville’s consent and other conditions, while the convertible promissory notes remain outstanding.

The net proceeds of the financing are expected to be used for general corporate purposes, including funding for research and development programs and supporting the upcoming Phase 1/2 diabetic foot ulcer clinical trial expected to begin in the second half of 2025.

For more information, please visit FibroBiologics’ website or email FibroBiologics at info@fibrobiologics.com. For more information on the SEPA, including important terms and conditions, please see FibroBiologics’ filings with the Securities and Exchange Commission, including its Current Reports on Form 8-K filed with the Securities and Exchange Commission from time to time.

This communication shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the securities discussed herein, in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

D. Boral Capital LLC acted as the exclusive placement agent in connection with the SEPA.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning FibroBiologics’ ability to sell additional shares under the SEPA, and plans for, and the timing of, clinical trials. These forward-looking statements are based on FibroBiologics' management's current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside FibroBiologics' management's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including those set forth under the caption "Risk Factors" and elsewhere in FibroBiologics' annual, quarterly and current reports (i.e., Form 10-K, Form 10-Q and Form 8-K) as filed or furnished with the SEC and any subsequent public filings. Copies are available on the SEC's website, www.sec.gov. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) risks related to FibroBiologics' liquidity and its ability to maintain capital resources sufficient to conduct its business; (b) expectations regarding the initiation, progress and expected results of our R&D efforts and preclinical studies; (c) the unpredictable relationship between R&D and preclinical results and clinical study results; and (d) the ability of FibroBiologics to satisfy the conditions under the SEPA and related agreements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and FibroBiologics assumes no obligation and, except as required by law, does not intend to update, or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. FibroBiologics gives no assurance that it will achieve its expectations.

About FibroBiologics

Based in Houston, FibroBiologics is a clinical-stage biotechnology company developing a pipeline of treatments and seeking potential cures for chronic diseases using fibroblast cells and fibroblast-derived materials. FibroBiologics holds 275+ US and internationally issued patents/patents pending across various clinical pathways, including wound healing, multiple sclerosis, disc degeneration, psoriasis, orthopedics, human longevity, and cancer. FibroBiologics represents the next generation of medical advancement in cell therapy and tissue regeneration. For more information, visit www.FibroBiologics.com. 

General Inquiries:
info@fibrobiologics.com

Investor Relations:
Nic Johnson
Russo Partners
(212) 845-4242
fibrobiologicsIR@russopr.com

Media Contact:
Liz Phillips
Russo Partners
(347) 956-7697
Elizabeth.phillips@russopartnersllc.com

FAQ

What is the total value of FibroBiologics (FBLG) SEPA agreement with Yorkville?

The total value of the SEPA agreement is $25 million, with $15 million structured in three $5 million tranches and potential for an additional $10 million subject to conditions.

How will FibroBiologics use the proceeds from the $5 million funding?

The proceeds will be used for general corporate purposes, including R&D funding and supporting the upcoming Phase 1/2 diabetic foot ulcer clinical trial in H2 2025.

How many patents does FibroBiologics (FBLG) currently have?

FibroBiologics has 275+ patents issued and pending, focusing on therapeutics and potential cures for chronic diseases using fibroblasts.

When is FibroBiologics' Phase 1/2 diabetic foot ulcer clinical trial expected to begin?

The Phase 1/2 diabetic foot ulcer clinical trial is expected to begin in the second half of 2025.

Who acted as the placement agent for FibroBiologics' SEPA agreement?

D. Boral Capital LLC acted as the exclusive placement agent in connection with the SEPA agreement.