iBio Announces $26 Million Private Placement

Rhea-AI Summary

iBio (NASDAQ:IBIO) announced a private placement expected to raise approximately $26 million gross, led by Frazier Life Sciences with participation from existing healthcare-focused institutional investors. The offering is expected to close on or about January 13, 2026, subject to customary conditions. iBio will sell 11,061,738 shares of common stock (or pre-funded warrants) at $2.35 per share (or $2.349 per pre-funded warrant). Proceeds are intended to advance preclinical cardiometabolic programs including IBIO-610, IBIO-600, and myostatin/activin A bispecific programs, and to fund other pipeline work and working capital. The financing extends iBio’s cash runway into calendar 2028. The securities were offered to accredited investors in a Regulation D/Section 4(a)(2) placement; iBio agreed to file registration statements covering resale.

Positive

• Approximate gross proceeds of $26 million
• Financing led by Frazier Life Sciences
• Sale of 11,061,738 shares at $2.35
• Proceeds dedicated to advancing key preclinical programs
• Extends company cash runway into calendar 2028

Negative

• Issuance of 11,061,738 shares may dilute existing shareholders
• Stated proceeds are gross; net amount after fees unspecified
• Securities are unregistered and resale is restricted until registration

Key Figures

PIPE gross proceeds $26 million Expected gross proceeds before fees from private placement

Shares/Pre-funded warrants 11,061,738 Aggregate common shares or pre-funded warrants sold in PIPE

Share purchase price $2.35 Purchase price per common share in PIPE

Pre-funded warrant price $2.349 Purchase price per pre-funded warrant in PIPE

Cash runway into calendar 2028 Company-reported cash runway extension from this financing

Securities Act section Section 4(a)(2) Exemption relied on for PIPE offering

Current price $2.35 Market_context price prior to news publication

52-week range $0.5562–$6.8908 52-week low and high from market_context

Market Reality Check

$2.70 Last Close

Volume Volume 1,909,281 is at 0.29x the 20-day average of 6,593,291 shares. low

Technical Price $2.35 is trading above the 200-day MA of $1.18, and 65.9% below the 52-week high.

Peers on Argus 1 Down

Among highlighted biotech peers, movements were mixed, with GOVX appearing in momentum scans and down 14.02%, while others such as PULM and LSTA showed smaller, offsetting moves. This points to stock-specific dynamics for IBIO rather than a coordinated sector rotation.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 24	Conference participation	Positive	+5.7%	Evercore healthcare conference appearance and IBIO-610 data discussion.
Nov 12	Earnings and financing	Positive	+0.8%	Q1 FY26 results and details of a $50M underwritten offering.
Oct 30	Preclinical data update	Positive	+0.7%	New non-human primate pharmacokinetic data for IBIO-610.
Oct 23	Conference participation	Positive	-8.6%	Guggenheim innovation conference appearance focused on obesity pipeline.
Oct 21	Preclinical data preview	Positive	+24.3%	Announcement of upcoming IBIO-610 data presentations at two conferences.

Pattern Detected

Recent iBio news—largely conferences and preclinical data—has most often been followed by positive price reactions, with only one notable divergence on a conference update.

Recent Company History

Over the last several months, iBio has focused news flow on its obesity and cardiometabolic antibody pipeline, particularly IBIO-610. Conference participation in October–November 2025 and new non‑human primate data generally coincided with positive price reactions, especially the Oct 21 preclinical data event. Financing and Q1 FY26 results on Nov 12, 2025 also saw a modestly positive move. Today’s private placement extends that capital-raising trajectory to support preclinical development.

Market Pulse Summary

This announcement details a $26 million private placement that extends iBio’s cash runway into calendar 2028, supporting preclinical cardiometabolic programs like IBIO-610. It follows earlier financings and conference updates that have funded and showcased the pipeline. Investors may watch how the added shares and pre-funded warrants affect future capitalization, as well as upcoming development milestones that could validate the strategy behind this non-registered PIPE structure.

Key Terms

private placement financial

"for a private placement ("PIPE") financing that is expected"

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.

PIPE financial

"for a private placement ("PIPE") financing that is expected"

A "pipe" is a planned series of financial transactions or projects that companies intend to carry out over time, often involving the raising of funds or development of new assets. It matters to investors because it provides a clear picture of a company's future growth plans and potential revenue, helping them assess the company's upcoming opportunities and overall stability. Think of it as a detailed roadmap guiding a company's future steps.

pre-funded warrant financial

"shares of common stock (or pre-funded warrant in lieu thereof) at a"

A pre-funded warrant is a financial instrument that gives the holder the right to buy shares of a company's stock at a set price, with most of the purchase cost already paid upfront. It functions like a nearly fully paid option, allowing investors to secure shares quickly while minimizing the amount of additional money they need to invest later. This helps investors gain ownership rights efficiently, often used to avoid certain regulatory restrictions or to prepare for future stock purchases.

Regulation D regulatory

"the “Act”) and Regulation D promulgated thereunder and, along with"

Regulation D is a set of rules that govern how companies can raise money from investors without going through the full process required for public stock offerings. It provides simplified options for private placements, making it easier for companies to seek investments from a smaller group of investors. For investors, it offers opportunities to invest in private companies, often with fewer restrictions, but also with different levels of risk and disclosure.

accredited investors financial

"The securities were offered only to accredited investors."

Accredited investors are individuals or entities considered to have enough financial knowledge and resources to understand and handle more complex and risky investments. They are often allowed to participate in private investment opportunities that are not available to the general public, similar to how experienced players might access exclusive clubs or events. This status helps ensure that investors can manage potential risks and rewards appropriately.

registration statements regulatory

"agreed to file one or more registration statements with the SEC covering"

Registration statements are detailed documents companies file with securities regulators when they plan to offer shares or other securities to the public. They act like a recipe and instruction manual, listing a company’s business, finances, management, risks and how the offering will work, so investors can judge value and potential downsides. For investors, these filings provide the official, legally required facts needed to make informed decisions and spot warning signs.

pre-funded warrants financial

"the shares of common stock underlying the pre-funded warrants may not be offered"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

AI-generated analysis. Not financial advice.

SAN DIEGO, Jan. 09, 2026 (GLOBE NEWSWIRE) -- iBio, Inc. (NASDAQ:IBIO), an AI-driven innovator of precision antibody therapies, today announced that it has entered into a securities purchase agreement with existing healthcare-focused, high-quality institutional investors for a private placement ("PIPE") financing that is expected to result in gross proceeds of approximately $26 million to the Company before placement agent fees and offering expenses. The offering is expected to close on or about January 13, 2026, subject to customary closing conditions.

The financing was led by Frazier Life Sciences and included participation from other existing investors.

iBio intends to use the net proceeds received from the offering to advance its preclinical cardiometabolic programs, including IBIO-610, IBIO-600, and the myostatin and activin A bispecific programs, through key development milestones, as well as to continue to progress its other preclinical pipeline assets, and the balance, if any, to fund iBio’s working capital requirements and for other general corporate purposes. This financing extends iBio’s cash runway into calendar 2028.

Pursuant to the terms of the securities purchase agreement, the Company is selling an aggregate of 11,061,738 shares of common stock (or pre-funded warrant in lieu thereof) at a purchase price of $2.35 per share (or $2.349 per pre-funded warrant), subject to certain beneficial ownership limitations set by each holder.

Leerink Partners acted as the lead placement agent for the offering. LifeSci Capital and Oppenheimer & Co. acted as co-placement agents.

The unregistered shares of common stock and pre-funded warrants sold in the PIPE financing described above were offered under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”) and Regulation D promulgated thereunder and, along with the shares of common stock underlying the pre-funded warrants, have not been registered under the Act or applicable state securities laws. Accordingly, the shares of common stock, the pre-funded warrants and the shares of common stock underlying the pre-funded warrants may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (“SEC”) or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. Pursuant to the terms of the securities purchase agreement with the investors, the Company has agreed to file one or more registration statements with the SEC covering the resale of the unregistered shares of common stock and the shares issuable upon exercise of the unregistered pre-funded warrants.

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

About iBio, Inc.

iBio (Nasdaq: IBIO) is a cutting-edge biotech company leveraging AI and advanced computational biology to develop next-generation biopharmaceuticals for cardiometabolic diseases, obesity, cancer and other hard-to-treat diseases. By combining proprietary 3D modeling with innovative drug discovery platforms, iBio is creating a pipeline of breakthrough antibody treatments to address significant unmet medical needs. iBio’s mission is to transform drug discovery, accelerate development timelines, and unlock new possibilities in precision medicine. 

Safe Harbor Statement

Any statements contained in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include statements regarding the intended use of proceeds, the expected gross proceeds from the offering, and the expected extension of the Company’s cash runway into calendar 2028. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and the completion of the offering on the anticipated terms or at all, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025, and the Company’s subsequent filings with the SEC, including subsequent periodic reports on Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statements contained in this press release speak only as of the date hereof and, except as required by federal securities laws, iBio, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

Corporate Contact: 
iBio, Inc. 
Investor Relations 
ir@ibioinc.com

Media Contacts: 
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 iBio (IBIO) expected to raise in the January 2026 private placement?

The offering is expected to generate approximately $26 million in gross proceeds.

What securities is iBio (NASDAQ:IBIO) selling in the PIPE and at what price?

iBio is selling 11,061,738 shares of common stock (or pre-funded warrants) at $2.35 per share (or $2.349 per pre-funded warrant).

When is the iBio (IBIO) PIPE financing expected to close?

The financing is expected to close on or about January 13, 2026, subject to customary closing conditions.

How will iBio (IBIO) use the proceeds from the $26M private placement?

Proceeds are intended to advance preclinical cardiometabolic programs including IBIO-610, IBIO-600, myostatin/activin A bispecific programs, other pipeline work, and working capital.

Does the iBio (IBIO) financing affect the company’s cash runway?

Yes, the company says the financing extends iBio’s cash runway into calendar 2028.

Are the shares sold in iBio’s (IBIO) PIPE immediately tradable in the U.S.?

No, the shares and pre-funded warrants were sold as unregistered securities to accredited investors; resale requires registration or an exemption.