RALEIGH, N.C., May 01, 2019 (GLOBE NEWSWIRE) -- Innovate Biopharmaceuticals, Inc. (NASDAQ: INNT) today announced the closing of its previously announced registered direct offering of 4,318,272 shares of common stock at a purchase price of $2.025 per share, for aggregate gross proceeds of approximately $8.7 million. Innovate also issued unregistered warrants to purchase up to 4,318,272 shares of common stock with an exercise price of $2.13 per share. The warrants are exercisable immediately following the issuance and will expire five and one-half years from the date of issuance.

H.C. Wainwright & Co. acted 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.