Avalo Therapeutics, Inc. has successfully completed the acquisition of AlmataBio, Inc. through a stock-for-stock transaction, which included issuing Avalo common stock and Series C Preferred Stock. In conjunction with the acquisition, Avalo closed a private placement investment on March 28, 2024, raising $185 million in gross proceeds with an initial investment of $115.6 million. Former AlmataBio stockholders received a $7.5 million cash payment upon closing. Additional development milestones include potential payments of $5 million and $15 million for the progression of a Phase 2 and Phase 3 trial, respectively, for hidradenitis suppurativa (HS), payable in cash or stock. The investment also provides Avalo with the possibility of receiving an extra $69.4 million upon the exercise of issued warrants. These funds are expected to support the development of AVTX...Show More

Avalo Therapeutics, Inc. has successfully completed the acquisition of AlmataBio, Inc. through a stock-for-stock transaction, which included issuing Avalo common stock and Series C Preferred Stock. In conjunction with the acquisition, Avalo closed a private placement investment on March 28, 2024, raising $185 million in gross proceeds with an initial investment of $115.6 million. Former AlmataBio stockholders received a $7.5 million cash payment upon closing. Additional development milestones include potential payments of $5 million and $15 million for the progression of a Phase 2 and Phase 3 trial, respectively, for hidradenitis suppurativa (HS), payable in cash or stock. The investment also provides Avalo with the possibility of receiving an extra $69.4 million upon the exercise of issued warrants. These funds are expected to support the development of AVTX-009 through Phase 2 trial data readout in 2026 and sustain company operations into 2027. Avalo has also announced amendments to its 2016 Equity Incentive Plan and 2016 Employee Stock Purchase Plan, pending stockholder approval. Furthermore, AlmataBio's financial statements for the year ending December 31, 2023, have been audited and restated due to previously reported accounting errors in research and development expenses. Avalo anticipates an increase in research and development expenses as a result of the acquisition and subsequent development activities.