Triangle pharma brings in new CFO looking for capital

Posted by on Jun 25, 2019

RALEIGH, N.C. – Amidst a continued effort to expand, Innovate BioPharmaceuticals has brought on a full-time chief financial officer, which it hopes will lead a push to raise more capital to finance its clinical trials and pipeline.

The Raleigh-based company (Nasdaq: INNT) just recently launched its Phase 3 trials of its lead candidate N-202 – a treatment for celiac disease and the first drug in history of the disease to make it to a Phase 3 trial.

The trial launch came after a long year of capital raises and deals, but the company has now brought on a former Cancer Genetics (Nasdaq: CGIX) CFO to find even more sources of non-dilutive funding.

Ed Sitar, has also headed the financial operations for ActiveHealth Management and Cadent Holdings – where he led $120 million in financings.

According to the company’s announcement, Sitar will lead a “focus on non-dilutive sources of capital to further develop its pipeline.”

“After an extensive search, we are excited to bring on a seasoned and highly experienced executive like Ed as we continue to expand the depth of our senior management team to help position us for future growth,’ stated CEO Sandeep Laumas.

The company declined to comment on future fundraising.

Sitar joins after a busy season of fundraising for the company, which has seen forward momentum led by a positive data read-out in April. Following the read-out, the company brought in $8.7 million through securities purchase agreements for 4.3 million shares of its stock.

In prior months, the company reported a securities purchase agreement with SDS Capital Partners for 4.2 million shares of its stock, bringing the company about $9.7 million in March. Just days prior to that, the company reported a $5.5 million securities purchase agreement with Atlas Science – a Utah company.

Those rounds followed still another $5.2 million agreement with Gustavia Capital Partners LLC in October. On March 1, the company repurchased the convertible note from Gustavia.

Innovate reported a net loss of $24.2 million last year – up substantially from the $11.6 million the year prior due to increased expenses for research and development. In an April earnings call, the company reported an unaudited cash and cash equivalents figure of $11.5 million.

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