Lyra Therapeutics Announces Closing of $50.0 Million Private Placement

WATERTOWN, Mass., June 01, 2023 (GLOBE NEWSWIRE) -- Lyra Therapeutics, Inc. (Nasdaq: LYRA) (“Lyra” or the “Company”), a clinical-stage biotechnology company developing innovative therapies for the localized treatment of chronic rhinosinusitis (CRS), today announced the closing of its previously announced private placement of common stock, pre-funded warrants to purchase common stock and purchase warrants to purchase common stock, resulting in gross proceeds of approximately $50.0 million. The private placement includes participation from new and existing investors, including Perceptive Advisors, Venrock Healthcare Capital Partners, Armistice Capital, Surveyor Capital (a Citadel company), North Bridge Venture Partners, Nantahala Capital, Samsara BioCapital, and Woodline Partners LP.

“We are pleased by the support from this high-quality group of investors as we complete our pivotal clinical trials of LYR-210 and advance our in-house commercial manufacturing capabilities to bring our localized drug therapy to CRS patients and physicians,” said Maria Palasis, Ph.D., President and Chief Executive Officer of Lyra. “This financing strengthens our balance sheet beyond key milestones, including the completion of ENLIGHTEN I, with topline results anticipated in the first half of 2024.”

Lyra ended the first quarter of 2023 with cash, cash equivalents and short-term investments of $82.7 million. Combined with the net proceeds from the private placement, the Company anticipates that it will have sufficient cash, cash equivalents and short-term investments to fund current planned operations into the first quarter of 2025.

“This offering gives us greater leverage to achieve our key objectives over the next year,” said Harlan W. Waksal, MD, Executive Chairman of Lyra Therapeutics. “In addition to providing resources and the flexibility to advance our late-stage product candidates, the financing enhances our ability to complete activities required for regulatory submission of LYR-210 and strengthens the foundation for our in-house commercial manufacturing operations.”

Under the terms of the private placement, Lyra issued and sold (i) approximately 17.7 million shares of the Company's common stock and pre-funded warrants to purchase approximately 2.4 million shares of the Company's common stock, with an exercise price of $0.001 per share, and (ii) accompanying common stock purchase warrants to purchase approximately 10.0 million shares of common stock, with an exercise price of $2.673 per share. The combined effective purchase price per share (or pre-funded warrant to purchase one share) and accompanying purchase warrant to purchase one-half of one share was $2.4925 (less the exercise price of the pre-funded warrant, if applicable). Each pre-funded warrant will be exercisable immediately and will expire on May 31, 2028. Each common stock purchase warrant will be exercisable at any time on or after November 30, 2023 and will expire on November 30, 2028.