iBio Inc. (NASDAQ: IBIO) stock surged by 4.79% at last close while the IBIO stock price gains by 14.89% in the pre-market trading session. iBio is a leader in plant-based biologics production and a manufacturer of next-generation biopharmaceuticals. Its FastPharming System combines vertical farming, automated hydroponics, and innovative glycosylation technologies to yield good monoclonal antibodies, antigens, and other proteins in a short amount of time.
IBIO stock’ Update
iBio, Inc. stated that it has purchased the manufacturing facility it previously leased from two Eastern Capital Limited affiliates. The Eastern Affiliates’ approximately 30% equity investment in iBio CDMO was also acquired by the Company. As a result, iBio now owns the subsidiary and all of its intellectual property.
Texas A&M University has a ground lease on the 130,000 square foot Bryan, Texas property. The CDMO will be the ground lease tenant until 2060 if potential extensions are exercised as part of the deal.
The deal cost $28,750,000 without fees and settlement costs, consisting of $28,000,000 in cash and warrants to purchase 1,000,000 shares of iBio common stock. To cover the last rent payment, iBio issued further warrants to acquire 289,581 shares of common stock. The net warrants to buy 1,289,581 shares of common stock are now exercisable, have an exercise price of $1.33 per share, and will terminate on October 10, 2026.
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The purchase was supported with about $6,000,000 in funding from iBio. iBio took out a $22,375,000 Senior Secured Term Loan with Woodforest National Bank to cover the remaining cash portion of the deal. The loan has a 3.25 percent interest rate and a two-year repayment period. It will give iBio the freedom to investigate longer-term financing possibilities for its FastPharming Facility. Taking these prospective financing options into account, as well as the predicted facility carrying cost savings from this transaction, the Company believes that its present cash position is adequate to sustain its activities through the first calendar quarter of 2023.
