Avalo Therapeutics, Inc. announced that it expects to receive $115.6 million in funding from Deep Track Capital, LP, TCG Crossover Management, LLC, Commodore Capital, BVF Partners L.P., Petrichor Energy Inc., RA Capital Management, L.P.

Avalo Therapeutics, Inc entered into a definitive agreement for the sale of 19,900 shares of non-voting convertible preferred stock and warrants to purchase up to an aggregate of approximately 12,000,000 shares of common stock or an equivalent amount for a gross proceeds of $115,600,000 on March 27, 2024. The transaction included participation from new investors led by Commodore Capital and TCGX, with participation from BVF Partners, Deep Track Capital, LP, Orbimed Partners, L.P., Petrichor, and RA Capital Management. The private placement is expected to close on March 28, 2024, subject to the satisfaction of customary closing conditions.

The transaction is subject to and upon stockholder approval, each share of non-voting convertible preferred stock issued to former stockholders and issued pursuant to the private placement investment will automatically convert to 1,000 shares of common stock, subject to certain beneficial ownership limitations. The non-voting convertible preferred stock holds no voting rights.