As part of the financing, Chinook’s existing investors, Versant Ventures, Apple Tree Partners and Samsara BioCapital, will purchase $25 million in Chinook common stock on the same terms as the new investors in lieu of their prior commitment to purchase convertible notes.
“We’re thrilled to have such a high-quality group of investors support our goal of building a leading kidney disease company to advance multiple clinical programs for IgA nephropathy and other rare, severe chronic kidney diseases with large unmet medical needs,” said Eric Dobmeier, president and chief executive officer of Chinook.
“Upon close of our proposed merger with Aduro Biotech, Chinook will be well-capitalized to move its pipeline programs forward towards its objective of providing meaningful results for patients and to prepare pre-commercialization strategies.”
In June of this year, Chinook announced that they are merging with Nasdaq-traded Aduro Biotech. The private placement closing is expected to occur immediately prior to the closing of the merger.
Following the proposed merger closing, Aduro will be renamed Chinook Therapeutics and is expected to trade on the Nasdaq Global Select Market under the ticker symbol “KDNY”.
Following the private placement financing, Chinook is expected to have at least $275 million in operating capital.