Tivic Health Systems , Inc. (NASDAQ:TIVC), a medical device company specializing in bioelectronic medicine with a market capitalization of $2 million, announced on Monday that it has exercised an exclusive option to extend its licensing agreement with Statera Biopharma, Inc. for the development of a treatment for Neutropenia, a condition characterized by an abnormally low count of neutrophils, a type of white blood cell. The company’s stock, which has seen significant volatility recently, is currently trading at $4.82, marking an 11.3% gain over the past week. According to InvestingPro analysis, the stock appears to be trading below its Fair Value.
Under the terms of the original agreement dated February 11, 2025, Tivic Health paid Statera a license fee of $1.5 million, which included both cash and stock considerations, for the rights to Entolimod, a proprietary Toll-like Receptor 5 (TLR5) agonist program. The new option grants Tivic Health exclusive worldwide rights to further indications of this program, specifically for Neutropenia. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 9.7, indicating robust ability to meet short-term obligations.
To facilitate this expansion, Tivic Health has issued additional equity securities to Statera and Avenue Venture Opportunities Fund, L.P., consisting of 55,704 shares of common stock and 131.1267 shares of Series A Preferred Stock. This issuance is part of an advanced milestone payment arrangement related to the development progress of the treatment.
The transaction is exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) of the Act and/or Regulation D promulgated thereunder, with the securities being issued only to accredited investors.
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