08:07 AM EDT, 07/21/2025 (MT Newswires) -- SAB Biotherapeutics ( SABS ) said Monday it entered into a securities purchase agreement to raise $175 million in gross proceeds via an oversubscribed private placement with institutional investors, including Sanofi ( SNY ) and RA Capital Management.

As part of the agreement, the company said it will issue up to 1 million shares of series B non-voting convertible preferred stock, which can convert into 100 million shares of common stock at $1.75 per share.

Investors will also receive warrants to purchase an additional 1.5 million series B preferred shares, for up to an additional $284 million in gross proceeds if fully exercised, the biotech company said.

The company said proceeds from the financing, expected to close Tuesday, will fund a phase 2b trial of SAB-142 for stage 3 type 1 diabetes, along with general corporate purposes.

Combined with existing cash, the company said it expects the funding to extend its runway into mid-2028.

Shares of the company were up 53% in Monday's premarket activity.