Azitra entered into a securities purchase agreement to raise gross proceeds of up to $31.4 million, including an initial $10.5 million in convertible preferred stock and up to $20.9 million upon cash exercise of warrants. The transaction, backed by healthcare-focused institutional investors including Stonepine Capital, Nantahala Capital and company insiders, is expected to close on or about March 20, 2026, subject to customary conditions.

The net proceeds together with existing cash will finance research and development of Azitra’s proprietary filaggrin protein and peptide technologies for precision dermatology applications. These initiatives aim to accelerate commercialization of products addressing fine lines, wrinkles, dry sensitive skin and eczema-like rashes.

Investors will purchase 10,470 shares of Series A convertible non-redeemable preferred stock at $1,000 per share, each paired with Series B and C warrants to buy up to 8,129 common shares per warrant at $0.123 per share. Preferred shares convert into common stock upon stockholder approval, with beneficial ownership limits and pre-funded warrants mitigating over-ownership; warrants expire 18 months after approval or 30 days after key cosmetic study data.

The global biotech cosmetic ingredients market was valued at $2.3 billion in 2024 and is projected to reach $3.7 billion by 2030. Azitra’s funding and genetic engineering platform aim to streamline product development timelines and attract strategic partnerships in the cosmeceutical sector.