**FibroBiologics Enters Standby Equity Purchase Agreement for $25 Million Financing** **

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FibroBiologics, Inc. (NASDAQ: FBLG), a clinical-stage biotechnology company focused on developing therapeutics and potential cures for chronic diseases, announced that it has entered into a Standby Equity Purchase Agreement (SEPA) with YA II PN, LTD., allowing for the potential sale of up to $25 million in common stock over a two-year period.

As per the SEPA, FibroBiologics will receive advances from YA II PN, LTD., with the initial $15 million being disbursed in three equal tranches through convertible promissory notes. The first tranche of $5 million was funded upon entering into the agreement, with subsequent tranches subject to specific conditions such as the filing of a registration statement and the effectiveness of shareholder approval as stipulated under Nasdaq rules.

CEO of FibroBiologics, Pete O’Heeron, stated that the financing will support the company’s ongoing clinical trials and IND-enabling studies, particularly focusing on its programs for diabetic foot ulcers and psoriasis. The remaining capital from the SEPA is anticipated to aid in the development of FibroBiologics’ human longevity, multiple sclerosis, and cancer indications.

Notably, in accordance with Nasdaq Rules and the terms of the SEPA, FibroBiologics is restricted from issuing or selling shares exceeding 19.99% of the outstanding common stock as of the Effective Date, unless stockholder approval is obtained. Additionally, the company is prohibited from issuing shares that would result in the investor owning more than 4.99% of the outstanding shares.

The SEPA also includes provisions for additional share purchases by the Investor, subject to the company’s discretion and set limitations. The agreement may be terminated under specific circumstances, including completion of the purchase obligation or mutual written consent between FibroBiologics and the Investor.

For further details on the Standby Equity Purchase Agreement and related agreements, interested parties are advised to refer to FibroBiologics’ filings with the Securities and Exchange Commission, including the most recent Form 8-K submission.

This disclosure contains forward-looking statements, and actual results of FibroBiologics may differ from those anticipated due to known and unknown risks and uncertainties. The company plans to update its forward-looking statements as necessary to reflect changing circumstances.

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*Note: This information is based on the Form 8-K filed by FibroBiologics with the SEC. For full details, refer to the company’s official filings.*

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FibroBiologics’s 8K filing here.

FibroBiologics Company Profile

FibroBiologics, Inc operates as a cell therapy, regenerative medicine company. It is developing a pipeline of treatments and potential cures for chronic diseases using fibroblast cells and fibroblast-derived materials. It holds 150+ U.S. and internationally issued patents/patents pending across various clinical pathways, including disc degeneration, orthopedics, multiple sclerosis, psoriasis, wound healing, reversing organ involution, and cancer.