Assembly Biosciences Announces $12.6M Equity Financing

Assembly Biosciences, Inc. (Assembly Bio), a biotechnology enterprise based in South San Francisco, has successfully closed equity financings involving Armistice Capital LLC and Gilead Sciences, Inc. These financings have collectively generated approximately $12.6 million in gross proceeds for the company, prior to the deduction of expenses.

The stock sale to Gilead ensures that Gilead maintains its 19.9 percent ownership of Assembly Bio's outstanding voting stock, in line with the Investor Rights Agreement established between the two companies in October 2023. Additionally, Assembly Bio and Gilead have consented to extend the timeline for fulfilling certain conditions that would allow Assembly Bio to request an increase in Gilead’s ownership stake up to 29.9 percent at a premium price.

Jason Okazaki, CEO and President of Assembly Bio, expressed that these investments bolster the company's financial position as it anticipates significant interim clinical data readouts by the year's end. Okazaki also highlighted the amendment of the equity agreement with Gilead as a testament to the shared commitment between the companies to advance their collaborative candidates, with four expected to enter clinical trials this year.

The deal with Armistice Capital involved the sale of 634,500 shares of common stock and warrants to purchase an additional 634,500 shares. Similarly, Gilead purchased 179,500 shares of common stock and warrants for 179,500 more shares. In both cases, the sale price was set at $15.46 per share and accompanying warrant, with the warrants having an exercisable price of $17.00 per share and an expiration date of June 18, 2029.

Assembly Bio plans to utilize the net proceeds from these equity financings for general corporate purposes. The shares and warrants sold to Armistice Capital were issued through a registered direct offering based on Assembly Bio’s existing effective shelf registration statement filed with the SEC. Conversely, the securities sold to Gilead were part of a private placement and not registered under the Securities Act of 1933. Assembly Bio has committed to register the resale of the shares and warrants sold to Gilead with the SEC.

Assembly Biosciences focuses on developing small-molecule therapeutics aimed at combating serious viral diseases. The company’s leadership comprises experts in virologic drug development dedicated to improving the lives of patients affected by chronic viral infections such as herpesvirus, hepatitis B (HBV), and hepatitis delta virus (HDV).