Arca biopharma signs deal for up to $54M in new stock sales

WESTMINSTER — Arca biopharma Inc. (Nasdaq: ABIO) restructured a stock sale-on-demand agreement with a major creditor as it prepares to launch a clinical trial for a possible treatment for heart-related COVID-19 complications this year. In filings to the U.S. Securities and Exchange Commission Wednesday, Arca said it cancelled pre-existing agreements with JonesTrading Institutional Services LLC for the new deal, which allows it to sell up to $54 million in new shares at market value upon the issuance of a new stock sales registration statement. Arca primarily works on genetically-targeted treatments for cardiovascular diseases. In May, it said it would investigate its AB201 drug candidate as a potential treatment for COVID-related blood clotting that has killed or caused serious complications in patients. The company plans to start Phase II trials for the treatment in the fourth quarter of this year. That sent the stock roaring from $3.95 per share on May 27 to a high of $19.21 the next day, but has since leveled off to around $7 per share. Arca also said that recent capital raises of about $19 million will keep the company solvent through 2021. Its primary drug candidate Gencaro is in Phase III trials, with that study expected to start this year. © 2020 BizWest Media LLC
Source: BizWest