Azitra Forms Partnership to Secure Up to $20 Million in Funding for Clinical Development

Azitra Partners with Alumni Capital for Funding

Azitra, Inc. (NYSE American: AZTR), a burgeoning biopharmaceutical firm focused on advancing precision dermatology, announced a groundbreaking partnership with institutional investor Alumni Capital LP. This collaboration is poised to facilitate up to $20 million in funding that will play a pivotal role in driving Azitra's clinical pipeline forward.

The share purchase agreement (SPA) will empower Azitra to have a responsive and flexible avenue for financial support, aiming to accelerate the development of innovative therapies targeting rare and severe dermatologic conditions. It is particularly noteworthy that both companies are entering this arrangement as Azitra strives to hit critical clinical milestones.

As the company pursues its objectives, the SPA aims to allow them to minimize equity dilution, thereby preserving shareholder value. This is particularly crucial as Azitra lays out plans regarding the timing and volumes of equity sales during the strategic development phase, focusing on treatments for conditions such as Netherton Syndrome and EGFR inhibitor-associated skin rashes. These disorders affect approximately 150,000 individuals nationwide and hold significant unmet medical needs.

Under the provisions of the SPA, Azitra has the latitude to sell shares worth up to $20 million and warrants to purchase additional shares over a predetermined 20-month timeframe. The purchase prices will be reflective of market conditions at the time of each sale, granting Azitra maximum control over the financial maneuvering throughout this period.

It is essential to note that any issuance of stock will comply with federal and state laws regarding securities. In line with the agreement, Azitra is also responsible for ensuring that Alumni Capital can resell any shares acquired under the agreement. However, the execution of any warrants will be contingent on shareholder consent, preserving governance standards.

Azitra has positioned itself to be at the forefront of innovation in dermatological care by leveraging its unique platform, which includes the lead program ATR-12—a specially engineered strain of S. epidermidis aimed at treating Netherton Syndrome. This rare skin disorder lacks approved treatment options and can be life-threatening in infancy, making Azitra's work of paramount importance.

Additionally, the ongoing ATR-04 program seeks to provide relief for skin rashes associated with EGFR inhibitors, with FDA Fast Track designation already secured for this indication. As Azitra's clinical efforts continue, the integration of artificial intelligence and machine learning ensures a scientific approach to selecting from a vast microbial library, enabling the development of rigorously tested dermal therapies.

As this partnership unfolds, it reflects a potential turning point for not only Azitra but also for patients suffering from rare dermatologic conditions. With considerable steps being taken to secure sustainable funding, industry observers remain keen to track how Azitra capitalizes on this opportunity to innovate and deliver much-needed therapies to the market.

In summary, this strategic financing initiative illustrates Azitra’s commitment to enhancing dermatological health through targeted therapies and represents a significant step forward in the company's overarching mission to improve the quality of life for those affected by severe skin disorders.