Benzinga | Jul 29, 2020 08:08AM EDT

Corbus Pharmaceuticals Says Has Received Aggregate Of $71M In Gross Proceeds From At-The-Market Offering

* Aggregate of $71 million of ATM proceeds executed at weighted average price of $7.70 per share

* Received $20 million first tranche from $50 million debt facility with K2 HealthVentures

* Cash on hand of $101 million expected to fund operations into third quarter of 2021

* Provides strategic flexibility post Phase 3 systemic sclerosis topline data readout later this summer

Norwood, MA, July 29, 2020 (GLOBE NEWSWIRE) -- Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) ("Corbus" or the "Company"), a clinical-stage drug development company pioneering transformative medicines that target the endocannabinoid system, today announced it has received an aggregate of $71 million in gross proceeds from its at-the-market ("ATM") offering coupled with the execution of a $50 million debt financing facility with K2 HealthVentures ("K2HV"), a healthcare-focused specialty finance company.

Pursuant to the previously disclosed $75 million ATM facility, Corbus has sold 9,167,080 shares at a weighted average price of $7.70 per share.

Jefferies, LLC is serving as sales agent for the ATM offering.

On July 28, 2020, Corbus entered a debt financing facility with K2HV pursuant to which K2HV agreed to provide up to $50 million to Corbus. Corbus received the first $20 million tranche upon signing the debt financing agreement and has the option to draw $20 million from the second tranche and $10 million from the third tranche, in each case upon achievement of certain regulatory and developmental milestones. K2HV is an alternative investment firm that partners with innovative life sciences and healthcare companies whose success will positively impact and improve outcomes for patients.

"Our partnership with K2 HealthVentures combined with the proceeds from our ATM transaction strengthens Corbus' balance sheet, providing us with a meaningful cash runway and increasing our ability to have strategic flexibility post data," commented Yuval Cohen, Ph.D., Chief Executive Officer of Corbus.

Morgan Stanley & Co. LLC acted as sole placement agent for the debt financing.

The Company expects its cash and cash equivalents on hand of approximately $101 million at July 28, 2020 to fund operations into the third quarter of 2021.

The shares of common stock described above were sold by the Company pursuant to a shelf registration statement on Form S-3 (File No. 333-237588), filed with the Securities and Exchange Commission on April 7, 2020, which included a prospectus relating to the ATM . Copies of the prospectus may be obtained from Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022, by telephone at (877) 821-7388, or by email atProspectus_Department@Jefferies.com.Electronic copies of the prospectus are also available on the SEC's website at http://www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any shares of common stock, nor shall there be any sale of such shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.