BRYAN, Texas, Nov. 03, 2021 (GLOBE NEWSWIRE) -- iBio, Inc. (NYSEA:IBIO) (“iBio” or the “Company”), a developer of next-generation biopharmaceuticals and pioneer of the sustainable, plant-based FastPharming System, today announced it has purchased the manufacturing facility it previously operated under a lease from two affiliates of Eastern Capital Limited (the “Eastern Affiliates”). The Company also acquired the approximate 30% equity interest in iBio CDMO, LLC. (the “CDMO”) held by the Eastern Affiliates. As a result, the subsidiary and its intellectual property are now wholly-owned by iBio.
“We are very pleased to now have full control of our facility, as well as the CDMO entity which holds the exclusive rights to manufacture using the FastPharming System in the United States,” said Tom Isett, Chairman & CEO of iBio. “In addition to immediately reducing our facility carrying costs by approximately 67%, this transaction should provide us with even greater strategic and operational flexibility to continue rapidly growing our team in Texas, as well as driving further adoption of FastPharming as the green alternative to traditional mammalian cell culture bioproduction around the globe.”
The 130,000 square foot Bryan, TX, facility is subject to a ground lease with Texas A&M University. As part of the transaction, the CDMO becomes the ground lease tenant until 2060 upon exercise of available extensions.
Before fees and settlement costs, the cost of the transaction was $28,750,000, comprised of $28,000,000 in cash plus warrants to purchase 1,000,000 shares of iBio common stock. iBio issued additional warrants to purchase 289,581 shares of common stock to pay for the final rent due. The total warrants to purchase 1,289,581 shares of common stock are immediately exercisable, will expire on October 10, 2026, and have an exercise price of $1.33 per share.
iBio provided approximately $6,000,000 in capital to fund the purchase. To fund the remaining cash portion of the transaction, iBio entered into a $22,375,000 Senior Secured Term Loan with Woodforest National Bank. The loan bears interest at 3.25% and matures in two years, providing iBio with the flexibility to explore potential longer-term financing options for its FastPharming Facility, including, but not limited to, a potential sale-leaseback transaction. Taking into account these potential financing options, combined with the facility carrying cost savings expected to be achieved through this transaction, the Company continues to believe that its current cash position is sufficient to fund its operations through the first calendar quarter of 2023.
