Chemomab Therapeutics Closes $10M Private Placement

Chemomab Therapeutics Ltd., a Tel Aviv-based biotechnology company listed on Nasdaq under the ticker CMMB, has recently secured approximately $10 million through a private placement. The company, which focuses on developing treatments for fibro-inflammatory diseases with significant unmet medical needs, achieved this financial milestone by selling a total of 8,097,167 American Depositary Shares (ADS) and pre-funded warrants in place of ADSs. Each ADS was priced at $1.235, and the private placement did not include warrant coverage.

The financing saw participation from both existing and new investors, including notable entities such as HBM Healthcare Investments, OrbiMed, and Sphera Biotech Master Fund LP. Oppenheimer & Co. Inc. served as the Capital Markets Advisor for this transaction, while additional advisory support was provided by LifeSci Capital and Maxim Group. The sale of these securities was conducted in a manner not involving a public offering, and the securities have not been registered under the Securities Act of 1933. Consequently, they may not be offered or sold in the United States without an effective registration statement or an applicable exemption from registration requirements.

As part of the arrangement, Chemomab and the participating investors entered into a registration rights agreement. This agreement stipulates that Chemomab will file a registration statement with the Securities and Exchange Commission (SEC) to register the resale of the ADSs, including those issuable upon the exercise of pre-funded warrants, issued in this private placement. This press release does not constitute an offer to sell or solicit an offer to buy these securities, nor will there be any sales of these securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful without proper registration or qualification under the securities laws of such jurisdictions.

Chemomab is well-positioned to achieve significant clinical milestones by the first quarter of 2025. The company is also advancing discussions with potential partners, leveraging positive Phase 2 results. The funds raised extend the company’s cash runway potentially to the beginning of 2026, providing a significant buffer to support its ongoing and planned clinical programs.

Chemomab's flagship product, CM-101, is a monoclonal antibody designed to neutralize CCL24 activity, which plays a critical role in fibrosis and inflammation. The therapeutic has shown promise in various clinical and preclinical studies, demonstrating a favorable safety profile and the potential to treat multiple severe and life-threatening fibro-inflammatory diseases. These include primary sclerosing cholangitis, metabolic-dysfunction-associated steatohepatitis, metabolic dysfunction–associated fatty liver disease, and severe lung injury. Notably, CM-101 is Phase 2-ready for the treatment of systemic sclerosis, with an open Investigational New Drug (IND) application in the United States.

This financial boost and the continued development of CM-101 underscore Chemomab's commitment to addressing significant unmet medical needs in the field of fibro-inflammatory diseases. The company remains focused on advancing its clinical programs and exploring strategic partnerships to further leverage the positive outcomes from its clinical trials.

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