ABVC BioPharma, Inc. (NASDAQ: ABVC) has closed a private placement of original issue discount senior convertible promissory notes with institutional and accredited investors, raising gross proceeds of approximately $3.39 million before fees and expenses, according to a company announcement.
The notes carry an aggregate principal amount of $4,106,060, an original issue discount of 17.5%, and mature on June 30, 2027. They become convertible eight months after issuance into common stock at 85% of the average of the three volume-weighted average prices for the three trading days immediately preceding conversion, subject to a floor price and adjustments. The securities were not registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption.
ABVC said it expects to use net proceeds for general working capital, funding of its subsidiaries, and a $625,000 settlement payment to Lind Global Fund II LP under a definitive release and settlement agreement. The payment is expected to satisfy specified outstanding claims and support the company’s ability to pursue broader financing and business development initiatives.
The offering is intended to support ABVC’s strategy of advancing its pharmaceutical and medical-device portfolio through strategic licensing, subsidiary development, and independent financing. The company has established dedicated platforms for its principal development areas: AiBtl BioPharma Inc. for central nervous system drug programs, OncoX BioPharma for oncology, ForSeeCon Eye for ophthalmic medical-device development and commercialization, and BioKey (Cayman), Inc. for contract pharmaceutical development and manufacturing services and an AI biotechnology innovation platform.
Through these arrangements, ABVC seeks to advance development programs while creating opportunities for licensing revenues, milestone payments, future royalties, and equity value. The company continues to evaluate potential strategic financing and capital-market opportunities for its affiliated businesses to support long-term development and commercialization objectives.
WallachBeth Capital, Inc. acted as placement agent. Hunter Taubman Fischer & Li LLC acted as legal counsel to ABVC, and Sichenzia Ross Ference Carmel LLP acted as counsel to the placement agent. Additional details will be available in a Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission.
The raise matters because it provides near-term liquidity and removes a specific outstanding claim, potentially allowing ABVC to focus on its clinical-stage pipeline of six drug candidates and the Vitargus® ophthalmic device. The settlement with Lind Global Fund II LP could reduce legal and financial uncertainty. However, the convertible structure may dilute existing shareholders, and the company remains a clinical-stage biopharmaceutical firm dependent on external financing. The full release is available through www.newmediawire.com.
