BOSTON and LONDON, June 04, 2024 (GLOBE NEWSWIRE) -- Akari Therapeutics Plc (NASDAQ:AKTX), an innovative biotechnology company advancing therapies for autoimmune and inflammatory diseases, today announced the successful initial closing of a private placement financing round. This transaction is expected to raise an aggregate of approximately $7.6 million in gross proceeds from both new and existing investors. "We are pleased to announce this financing for Akari Therapeutics," said Samir R. Patel, MD, Interim President and CEO of Akari Therapeutics. "The overwhelming interest from investors allowed the company to upsize the transaction to $7.6 million and highlights the excitement surrounding our science and the strategic direction of the company, and our merger with Peak Bio, which we expect to close in the third quarter of 2024." The majority of the private placement financing was supported by new investors, with continued support from certain existing investors, led by Akari's Chairman, Dr. Ray Prudo, and Interim President and CEO, Samir R. Patel, MD, underscoring their strong confidence in the company's future. "I believe investors share our enthusiasm for the Akari-Peak go-forward strategy and combined scientific potential. The financing supports investors' belief in our strategic vision and the future of our combined companies and the management team," added Dr. Patel. The company entered into a definitive agreement for the private placement with the investors on May 29, 2024, pursuant to which the Company agreed to sell and issue an aggregate of 4,029,754 unregistered American Depository Shares ("ADSs"), each representing 2,000 of the Company's ordinary shares, and Series C Warrants (the "warrants") to purchase up to 4,029,754 ADSs, at a per unit price of $1.885 per ADS and warrant. The warrants have a term of 3 years from the closing date of the private placement and have cashless exercise provisions. The warrants (other than those issued to Dr. Ray Prudo and Samir R. Patel, M.D.) have an exercise price of $1.76 per ADS, which is equal to the Nasdaq official closing price of the Company's ADSs on the Nasdaq Capital Market on May 29, 2024. The warrants issued to Dr. Ray Prudo and Samir R. Patel, M.D., have an exercise price of $1.79 per ADS, which is equal to the price at which the Company's ADSs were last sold on the Nasdaq Capital Market on May 29, 2024. In connection with the initial closing of the private placement on May 31, 2024, the Company received gross proceeds of approximately $7.2 million, and issued 3,817,553 unregistered ADSs and warrants to purchase up to an aggregate of 3,817,553 ADSs. The remaining 212,201 ADSs and warrants to purchase up to 212,201 ADSs are expected to be issued and sold by the Company within 90 days of May 31, 2024, subject to receipt of payment related thereto. Paulson Investment Company LLC acted as the exclusive placement agent for the financing. The securities described above were offered and sold in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act") and Regulation D promulgated thereunder and have not been registered under the Act or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from such registration requirements. No Offer or Solicitation This communication is not intended to and shall not constitute an offer to subscribe for, buy or sell or the solicitation of an offer to subscribe for, buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of, or offer to sell or buy, securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws ...