Metabasis raises $10M to fund clinical programs

Metabasis Therapeutics, based in San Diego, USA, says that it has raised around $10.0 million through the successful completion of a warrant exchange and concurrent private placement. Metabasis intends to use the proceeds from the transaction for general corporate purposes, including the further clinical development of MB07803 and MB07811 for the treatment of diabetes and hyperlipidemia, respectively.

The participants in the transaction were certain current investors who held existing warrants for the purchase of common stock issued previously by the company in its October 2001 and October 2005 private placements. Pursuant to the transaction, Metabasis reduced the exercise prices of the existing warrants held by the participants in exchange for the immediate exercise of the warrants. The firm also sold additional shares and warrants for the purchase of common stock in a concurrent private placement. Collins Stewart acted as exclusive financial advisor to Metabasis in connection with this transaction.