RICHMOND, VA – AmpliPhi BioSciences Corporation, a biotechnology company focused on the development of bacteriophage-based antibacterial therapies to treat drug resistant infections, has completed a successful private placement of convertible preferred stock with gross proceeds of $7 million. The financing was led by established life-sciences investors RA Capital Management and Radford-based Third Security, LLC, with participation from BioScience Managers Pty Ltd. AmpliPhi was created in 2011 through the merger of BioControl Ltd with Targeted Genetics Inc. and subsequent combination with Special Phage Services in 2012.The company is headquartered in Richmond, with operations also in the UK and Australia.
Philip J. Young, President and Chief Executive Officer of AmpliPhi said “The financing will allow us to more rapidly advance the development and commercialization of a variety of bacteriophage-containing human therapeutics for use in the treatment of bacterial infections. We are very pleased to have the support of these outstanding life science investors”
Under the terms of the financing, the Company has issued an aggregate amount of approximately 5 million shares of the Company’s newly created Series B convertible preferred stock for an aggregate purchase price of $7 million. Each preferred share is convertible into 10 shares of common stock. Additionally, the Company has issued warrants to purchase an aggregate of up to approximately 17.5 million shares of common stock at an exercise price of $0.14 per share. In connection with the financing, outstanding convertible notes with an aggregate principal value of approximately $6.3 million have converted into approximately 5 million shares of Series B convertible preferred stock, together with warrants to purchase approximately 12.5 million shares of common stock at an exercise price of $0.14 per share.
In conjunction with this financing transaction, Julian P. Kirk, Managing Director of Third Security, LLC, will join AmpliPhi’s Board of Directors. Mr. Jeremy Curnock Cook, Chairman of the Board of Directors, commented, “The addition of Julian is an important milestone in the continued evolution of AmpliPhi. We are excited to be welcoming him to the board and look forward to his guidance through the continued strategic, operational and financial growth of the company.”