Vor Bio announced on December 27, 2024, that it has entered into a securities purchase agreement for a private investment in public equity (PIPE) financing, expected to generate gross proceeds of approximately $55.6 million. This capital infusion is intended to fund clinical and preclinical development of its pipeline candidates and for general corporate purposes.
Under the terms of the agreement, Vor Bio will issue 55,871,260 shares of common stock and accompanying warrants to purchase 69,839,075 shares, at a combined price of $0.99425 per share and accompanying warrants. The warrants have an exercise price of $0.838 and could provide an additional $58.5 million if exercised for cash.
The PIPE was led by new investor Reid Hoffman and included participation from existing investor RA Capital Management, Vor Bio's largest stockholder. As part of the PIPE, both Mr. Hoffman (or his nominee) and RA Capital Management will be granted one board seat and one board observer seat, reflecting their significant investment and strategic involvement. The financing is expected to extend the company's cash runway through the release of updated clinical data in 2025.
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