Akari Therapeutics Raises $7.6 Million in Expanded Funding Round

Akari Therapeutics Plc (Nasdaq: AKTX), a cutting-edge biotechnology firm focused on developing treatments for autoimmune and inflammatory disorders, has announced the initial success of its private placement financing round. This effort is projected to generate approximately $7.6 million in gross proceeds, attracting both new and existing investors. 

Dr. Samir R. Patel, Interim President and CEO of Akari Therapeutics, expressed satisfaction with the financing, noting the strong investor interest led to an upsizing of the transaction to $7.6 million. He highlighted the enthusiasm surrounding Akari's scientific advancements and strategic direction, particularly its forthcoming merger with Peak Bio, expected to conclude in the third quarter of 2024.

The majority of the financing was backed by new investors, with significant continued support from existing ones, including Akari’s Chairman, Dr. Ray Prudo, and Dr. Patel himself. This support underscores strong confidence in the company’s future and its strategy post-merger with Peak Bio. Dr. Patel commented on the shared enthusiasm for the combined company's scientific potential and strategic vision.

On May 29, 2024, Akari entered into a definitive agreement for the private placement, agreeing to sell an aggregate of 4,029,754 unregistered American Depository Shares (ADSs), each representing 2,000 of the company's ordinary shares, along with Series C Warrants to purchase up to 4,029,754 ADSs at a per unit price of $1.885. The warrants, which have a three-year term from the closing date and cashless exercise provisions, have an exercise price of $1.76 per ADS, equating to the Nasdaq closing price on May 29, 2024. Warrants issued to Dr. Prudo and Dr. Patel have an exercise price of $1.79 per ADS, the last sale price on Nasdaq for that date.

During the initial closing of the private placement on May 31, 2024, Akari received gross proceeds of approximately $7.2 million, issuing 3,817,553 unregistered ADSs and warrants to purchase up to 3,817,553 ADSs. The remaining 212,201 ADSs and accompanying warrants are expected to be issued within 90 days, contingent upon payment receipt.

Paulson Investment Company LLC served as the exclusive placement agent for this financing. The securities were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933 and Regulation D. They have not been registered under the Act or state securities laws and cannot be sold in the United States without SEC registration or an appropriate exemption.

This communication does not constitute an offer to sell or buy securities, nor a solicitation for such activities. It is intended solely for informational purposes, with any actual securities offering to be made via a prospectus that meets the requirements of Section 10 of the Securities Act of 1933.

Akari Therapeutics Plc is advancing therapies for autoimmune and inflammatory diseases, with its lead asset, investigational nomacopan, serving as a bispecific recombinant inhibitor. The company is also engaged in pre-clinical research on long-acting PAS-nomacopan for geographic atrophy (GA).

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