What is Going on with BTX?
Brooklyn Immunotherapeutics (BTX) entered into a Purchase Agreement and a Registration Rights Agreement on April 26, 2021 with Lincoln Park Capital Fund, LLC. The stock soared during pre-market trading, advancing 29.66% to $64.57 per share Monday morning.
This agreement issues 56,041 shares of common stock to the selling stockholder, which are referred to as commitment shares because the selling stockholder has committed to purchase additional shares of common stock due to the agreement, subject to satisfaction of specific conditions. These commitment shares are included in the 1,323,627 shares of common stock issued to the selling stockholder. Brooklyn Immunotherapeutics may not receive any proceeds from the selling stockholder’s sale of common stocks, but they may receive gross amounts of up to $20,000,000 from the sale of shares to the selling stockholder as a result of the Purchase Agreement.
Additionally, Brooklyn Immunotherapeutics announced on April 29, 2021 that is has received license for Factor Bioscience Limited and Novellus Therapeutics Limited’s mRNA gene editing and cell therapies technology. This technology platform includes the process in developing gene editing compounds with mRNA and mRNA reprogramming. The access to this process provides high efficiency that is footprint free, applicable to both allogeneic and autologous cells, eliminates off-target effects and includes the ToRNAdo lipid delivery system.
What This Means for BTX?
Brooklyn Immunotherapeutics’ CEO and President says that, ‘“As a result of the license acquisition, Brooklyn is now poised to become a key player among companies exploring gene editing for cell therapies. This mRNA gene editing technology has the potential to be disruptive given its high efficiency and relatively low manufacturing costs. We look forward to continuing the work begun by Factor Bioscience and Novellus with this platform and to reporting our progress as our products advance towards the clinic,” and, “Our licensing of this technology represents a significant advancement in our approach to treating cancers, blood and other disorders, and transforms us from a single therapeutic company with multiple potential indications to a platform company with multiple products in a pipeline of next-generation engineered cellular medicines.”
This expresses promise for the company as they go forward in developing their pre-clinical development programs for diseases such as sickle cell anemia, monogenic disorders, and both solid and liquid tumors. Brooklyn Immunotherapeutics hopes to be at the Investigational New Drug (IND) stage for one or more of these diseases by 2024.
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Brooklyn ImmunoTherapeutics Inc is a clinical stage biopharmaceutical company. It is developing IRX-2, a novel hd-IL-2 -based therapy, to treat patients with cancer. IRX-2 delivers hd-IL-2 and other key cytokines to potentially restore immune function in the tumor microenvironment, enabling the immune system to attack cancer cells.