San Diego biotech Fate Therapeutics Inc. reported a private financing totaling $57 million.
The company entered a securities purchase agreement led by Redmile Group LLC with participation from BVF Partners LP, Ecor1 Capital LLC, and Franklin Advisors, according to a Fate news release.
As part of the deal, Redmile has agreed to purchase 2,819,549 shares of non-voting Class A preferred stock at $13.30 per share, each convertible to five shares of common stock. The remaining investors have agreed to purchase 7,236,837 shares of common stock at $2.66 per share. Gross proceeds are expected to total $57 million.
Fate Therapeutics, a public company with a market cap of $97.4 million, is developing programmed cellular therapeutics for the treatment of severe, life-threatening disease.
The news of its new financing, along with rumors on Twitter that Fate has been granted Orphan Drug status in the European Union, boosted the company’s stock 10 percent Tuesday.
