Branford-based Azitra Inc., a clinical-stage biotech developing topical treatments for skin diseases using genetically engineered bacteria, has secured up to $31.4 million in private financing from institutional investors, as the company works to regain compliance with stock exchange listing requirements.
The clinical-stage dermatology biotech announced Thursday it will receive about $10.5 million upfront through the sale of convertible preferred stock, with up to an additional $20.9 million available if investors exercise warrants.
The financing is expected to close on or about Friday, subject to customary conditions, the company said.
Participating investors include healthcare-focused funds Stonepine Capital and Nantahala Capital, along with other institutional investors and company insiders, including CEO Francisco Salva.
The company is developing treatments for skin conditions including Netherton syndrome and drug-related skin rashes.
Azitra said it plans to use the proceeds for research and development, working capital and general corporate purposes.
Part of the funding will support development of filaggrin-based proteins and peptides for the consumer skincare and “cosmeceutical” market, expanding beyond the company’s clinical drug pipeline. The technology targets skin barrier deficiencies linked to conditions such as dry skin, eczema-like rashes and visible signs of aging.
The company has not yet generated revenue and has reported ongoing losses, and said in a recent annual filing that it expects to need additional financing to support its business plan.
The financing follows a March 13 disclosure that Azitra is not in compliance with certain New York Stock Exchange listing standards related to minimum stockholders’ equity. The company has until April 1, 2027 to regain compliance or face potential delisting proceedings, according to the disclosure.
Azitra also disclosed in a recent annual filing that its auditor raised substantial doubt about the company’s ability to continue as a going concern.
As of February, Azitra reported having 13 employees and full-time consultants.
