09:23 AM EDT, 08/11/2025 (MT Newswires) -- Equillium ( EQ ) said Monday it has signed a definitive securities purchase deal with healthcare investors to raise up to $50 million via a private placement.

Shares of the company were up 124% in recent Monday premarket activity.

Under the agreement, Equillium ( EQ ) said it will receive an initial $30 million in exchange for about 52.6 million shares or pre-funded warrants, adding that it could raise an additional $20 million if it achieves certain pre-specific milestones.

ADAR1 Capital Management and Janus Henderson Investors are the lead investors in the financing, with Adage Capital Partners LP, Coastlands Capital, and Woodline Partners LP also participating, the company said.

Equillium ( EQ ) said it will use proceeds from the offering to develop its investigational treatment EQ504 and for general corporate purposes. The company plans to begin a phase-1 clinical trial for EQ504 to treat ulcerative colitis and pouchitis by mid-2026.