--- title: "Avalo Therapeutics sets up $75,000,000 at-the-market program with TD Cowen" url: "https://aibio.space/news/avalo-therapeutics-sets-up-75-000-000-market-program-td-cowen/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-06-05" section: "Financings" tickers: "NASDAQ:AVTX" source: "https://www.sec.gov/Archives/edgar/data/1534120/000162828025029637/avalo424b5atmprospectussup.htm" summary: "Avalo ended an earlier $50.0 million sales agreement with Oppenheimer. Its stock last sold at $3.72 on May 29, 2025." --- By the aibio.space news desk. Sources - [Avalo Therapeutics, Inc. 424B5 (2025-06-05)](https://www.sec.gov/Archives/edgar/data/1534120/000162828025029637/avalo424b5atmprospectussup.htm) - [Avalo Therapeutics, Inc. 8-K (2025-06-05)](https://www.sec.gov/Archives/edgar/data/1534120/000162828025029639/avtx-20250603.htm) - [Avalo Therapeutics, Inc. 10-K (2025-03-20): business](https://www.sec.gov/Archives/edgar/data/1534120/000162828025013986/avtx-20241231.htm) [AVTX](https://aibio.space/companies/avalo-therapeutics/) 2025-06-05 # Avalo Therapeutics sets up $75,000,000 at-the-market program with TD Cowen Tickers [AVTX](https://aibio.space/companies/avalo-therapeutics/) Avalo ended an earlier $50.0 million sales agreement with Oppenheimer. Its stock last sold at $3.72 on May 29, 2025. ## Key facts - **Company**: Avalo Therapeutics, Inc. (NASDAQ: AVTX) - **News type**: Financings - **Primary source**: [Avalo Therapeutics, Inc. 424B5 (2025-06-05)](https://www.sec.gov/Archives/edgar/data/1534120/000162828025029637/avalo424b5atmprospectussup.htm) *A city skyline in morning haze. CC0, via rawpixel. The picture shows the field, not the companies named.* Avalo Therapeutics, Inc. (Nasdaq: [AVTX](https://aibio.space/companies/avalo-therapeutics/)) entered into a sales agreement dated June 5, 2025, with TD Securities (USA) LLC, known as TD Cowen. The agreement lets Avalo sell common stock with an aggregate offering price of up to $75,000,000 from time to time. The filing says the sales would be at-the-market offerings under Rule 415, sold into the open market at prevailing prices, or made in negotiated transactions such as block trades. Avalo is not obligated to sell any shares. TD Cowen would earn a commission of up to 3.0% of gross proceeds from the shares it sells. The company has agreed to indemnify TD Cowen against certain liabilities, including liabilities under the Securities Act. The prospectus supplement refers readers to its plan of distribution on page S-7 for the compensation terms. ## The Oppenheimer agreement and the shelf The new program replaces an earlier arrangement. In May 2023, Avalo entered into a sales agreement with Oppenheimer & Co. Inc. as sales agent, which it amended in August 2023. That agreement allowed sales of up to $50.0 million. On June 3, 2025, Avalo gave written notice to terminate it, effective no later than June 4, 2025. The company says it is not subject to any termination penalties. It says it may not sell any more shares under the earlier agreement or its prospectus supplement dated May 4, 2023. The shares are offered under a Form S-3 shelf registration, with a base prospectus dated May 2, 2023. ## Public float and the share price The prospectus supplement says Avalo is not subject to General Instruction I.B.6 of Form S-3, which caps sales by companies whose public float is below $75.0 million. As of March 20, 2025, the public float was approximately $90.1 million, based on 10,671,868 shares held by non-affiliates and a price of $8.44 per share, the last sale on February 21, 2025. The last reported sale price on the Nasdaq Capital Market was $3.72 per share on May 29, 2025, which the supplement uses as its assumed price. The supplement assumes that 20,161,290 shares are sold at that price under the sales agreement. It says that, upon completion of the offering and based on 10,827,620 shares outstanding as of March 31, 2025, Avalo would have 30,988,910 shares outstanding, assuming no exercise of outstanding options and warrants. ## Use of proceeds and the risks Avalo says it intends to use the net proceeds, if any, for working capital and general corporate purposes, primarily to support the ongoing clinical development of AVTX-009 and general and administrative expenses. The supplement says management will have broad discretion over the proceeds and that stockholders may not agree with how they are allocated. The supplement cautions about several risks, including the results of the Phase 2 LOTUS trial of AVTX-009, the company's cash position and the need to raise more capital in the future. The supplement also notes that Ernst & Young LLP audited the 2022 financial statements, and that its report contains an explanatory paragraph describing conditions that raise substantial doubt about the company's ability to continue as a going concern. ## The company and its counsel According to the annual report filed on March 20, 2025, Avalo is a clinical-stage biotechnology company focused on immune dysregulation. Its lead asset is AVTX-009, an anti-IL-1β monoclonal antibody targeting inflammatory diseases. The company's strategy includes completing the Phase 2 LOTUS trial in hidradenitis suppurativa and considering further indication expansion for AVTX-009. LOTUS is a placebo-controlled trial in approximately 180 adults, with its primary endpoint measured at Week 16. The annual report names Novartis as the one company with an approved anti-IL-1β antibody. Wyrick Robbins Yates & Ponton LLP of Raleigh, North Carolina, is named to pass upon certain legal matters for the offering. Its opinion on the validity of the shares is filed as Exhibit 5.1 to the 8-K filed on June 5, 2025. TD Cowen is represented by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. Avalo agreed to reimburse TD Cowen up to $75,000 of outside legal expenses and estimates other offering expenses at approximately $0.2 million. The prospectus says TD Cowen may be deemed an underwriter under the Securities Act. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story AVTX Avalo Therapeutics, Inc. NASDAQ · United States Open the starter desk ## More in Financings Financings ### [INmune Bio raises $4.50 million in registered direct offering with warrants](https://aibio.space/news/inmune-bio-raises-4-50-million-registered-direct-offering-warrants/) Oct 29, 2026 Financings ### [Lexeo Therapeutics files $300 million shelf registration](https://aibio.space/news/lexeo-therapeutics-files-300-million-shelf-registration/) Oct 29, 2026 Financings ### [ProKidney files $650 million shelf with $200 million Jefferies sales program](https://aibio.space/news/prokidney-files-650-million-shelf-200-million-jefferies-sales-program/) Oct 29, 2026 --- Source page: https://aibio.space/news/avalo-therapeutics-sets-up-75-000-000-market-program-td-cowen/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "Avalo Therapeutics sets up $75,000,000 at-the-market program with TD Cowen", 2025-06-05, https://aibio.space/news/avalo-therapeutics-sets-up-75-000-000-market-program-td-cowen/