Houston-based FibroBiologics, a regenerative medicine company developing treatments for chronic disease using fibroblast cells, signed an agreement with a private investment group that will provide the company with up to $100 million over the next three years.
GEM Global Yield, with offices in New York and Paris, will issue the funds to FibroBiologics after a public listing of the company's common stock.
Under the deal, FibroBiologics will control the timing and maximum amount of the drawdown and has no minimum drawdown obligation.
Over a three-year period, FibroBiologics will issue warrants to GEM to purchase up to 4 percent of the total equity interests. FibroBiologics intends to use the funds to continue developing its fibroblast-based cell therapy platform, which is designed to treat spine and orthopedic conditions, multiple sclerosis and cancer.
"This agreement provides for a strong balance sheet upon public listing and positions FibroBiologics for the next stage of commercial development to deliver life-changing abatement for patients with incurable chronic diseases," Pete O'Heeron, FibroBiologics CEO and chairman, said in a Nov. 16 news release.