KNOW Bio Secures $30 Million in Equity Financing to Advance Nitric Oxide-Based Antiviral Therapies

Recently, VCBeat (WeChat official account: vcbeat) learned that life sciences company KNOW Bio has announced the completion of a new $30 million equity financing round. This round was supported by a single investor, Reedy Creek.

KNOW Bio is dedicated to redefining the standard of care for most diseases and conditions by leveraging its extensive intellectual property portfolio, as well as licensed patents and applications in the field of nitric oxide. Vast Therapeutics and PhotonMD are two subsidiaries spun out from KNOW Bio. KNOW Bio’s corporate strategy involves establishing subsidiaries and assembling teams of experienced professionals, incentivizing these teams through equity grants in the respective subsidiaries. KNOW Bio retains control over each subsidiary.

It is reported that since its establishment in 2015, KNOW Bio has completed two rounds of financing. The first round was closed on November 7, 2018, raising $13 million.

The proceeds from this financing round will be used to support KNOW Bio and its subsidiaries in the research and development of new therapies. As a majority-owned subsidiary of KNOW Bio, Vast Therapeutics is dedicated to providing anti-respiratory infection products for patients with cystic fibrosis (CF).

Currently, the average life expectancy for 80% of individuals with cystic fibrosis (CF) viral infections is only 40 years. Twenty-nine strains of Pseudomonas aeruginosa (PA) are the primary pathogens responsible for disease exacerbation in most CF patients. CF patients of any age may require hospitalization for several months to receive antibiotic injections for PA infections. Therapeutic products developed by Vast Therapeutics have demonstrated efficacy in both in vitro laboratory tests and animal model studies.

Neal Hunter, Chairman of the Board of KNOW Bio, stated, “Partnering with Reedy Creek is highly beneficial for our company and potential patients. Through this investment, our team will make significant strides in nitric oxide research. Our goal is to decisively eradicate bacteria that cause viral infections, particularly antibiotic-resistant strains. This investment will enable us to advance multiple drug candidates simultaneously and accelerate the completion of our studies, thereby delivering solutions more rapidly to those in need. We look forward to the company’s continued growth and its ability to deliver greater value to both investors and potential patients.”

John Oakley, the company’s Chief Financial Officer, added, “This is a significant milestone for KNOW Bio. We will align technological innovation with robust financial execution, enabling us to implement a long-term strategy across our subsidiaries. Our plan involves building dedicated teams and acquiring necessary equipment for each operating company, while continuing to leverage small, agile teams to drive strategic operations with effective partners. This approach will optimize capital efficiency by maintaining low costs while maximizing productivity.”

Reedy Creek, established in April 1998 and headquartered in North Carolina, USA, is an investment management company that issues municipal bonds and municipal financial products, administers bond proceeds, and provides investment advisory services.

(Compiled by Zhang Yujie)