RALEIGH, N.C., April 29, 2019 (GLOBE NEWSWIRE) -- Innovate Biopharmaceuticals, Inc. (NASDAQ: INNT) today announced that it has entered into securities purchase agreements with certain institutional investors providing for the purchase and sale of 4,318,272 shares of common stock at a purchase price of $2.025 per share, in a registered direct offering priced at-the-market for aggregate gross proceeds of approximately $8.7 million. Innovate will also issue unregistered warrants to purchase up to 4,318,272 shares of common stock with an exercise price of $2.13 per share. The warrants will be exercisable immediately following the issuance and will expire five and one-half years from the date of issuance.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

About Innovate Biopharmaceuticals, Inc. (Nasdaq: INNT)

Innovate is a clinical stage biotechnology company focused on developing novel therapeutics for autoimmune and inflammatory diseases. Innovate’s lead drug candidate, larazotide acetate, has a mechanism of action that renormalizes the dysfunctional intestinal barrier by decreasing intestinal permeability and reducing antigen trafficking, such as gliadin fragments in celiac disease, and bacterial toxins and immunogenic antigens in nonalcoholic steatohepatitis (NASH). In several diseases, including celiac disease, NASH, Crohn’s disease, ulcerative colitis, irritable bowel syndrome (IBS), type 1 diabetes mellitus (T1DM), chronic kidney disease (CKD), the intestinal barrier is dysfunctional with increased permeability.