ABVC BioPharma Closes $3.39 Million Private Placement to Fuel Subsidiary Growth and Settle Debt

ABVC BioPharma, Inc. (NASDAQ: ABVC), a clinical-stage biopharmaceutical company, has closed a private placement of original issue discount senior convertible promissory notes with institutional and other accredited investors, generating aggregate gross proceeds of approximately $3.39 million before placement agent fees and other offering expenses. The notes carry an aggregate principal amount of $4,106,060, an original issue discount of 17.5%, and mature on June 30, 2027. Following the eight-month anniversary of issuance, the notes are convertible into shares of common stock at a conversion price equal to 85% of the average of the three volume-weighted average prices for the three trading days immediately prior to conversion, subject to a floor price and adjustments as provided in the agreements.

The company expects to use the net proceeds for general working capital purposes, the funding of its subsidiaries, and a $625,000 settlement payment to Lind Global Fund II LP under a definitive release and settlement agreement. That payment is expected to satisfy specified outstanding payment claims and support ABVC's ability to pursue broader financing and business development initiatives. The offering is also expected to support ABVC's strategy of advancing its pharmaceutical and medical-device portfolio through strategic licensing, subsidiary development, and independent financing initiatives. ABVC has established dedicated business platforms across its principal development areas, including 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 as well as an AI Biotechnology Innovation Platform. Through these arrangements, ABVC seeks to advance its development programs while creating opportunities for licensing revenues, milestone payments, future royalties, and equity value.

The transaction matters for Texas readers because ABVC's platform companies and contract development and manufacturing operations can plug into the state's growing life-sciences and biomanufacturing ecosystem. BioKey's contract pharmaceutical development and manufacturing services, in particular, represent the kind of specialized capacity that Texas biotech startups and established drug developers increasingly seek as they scale. The settlement with Lind Global removes an overhang that could have constrained ABVC's ability to allocate capital toward its subsidiaries, potentially freeing those units to pursue partnerships, licensing deals, and independent financing. For investors, the 17.5% original issue discount and conversion features introduce dilution risk, but the capital infusion extends the company's runway and signals continued access to institutional funding. WallachBeth Capital, Inc. acted as placement agent, while Hunter Taubman Fischer & Li LLC served as legal counsel to the company and Sichenzia Ross Ference Carmel LLP as counsel to the placement agent. The notes and underlying shares have not been registered under the Securities Act of 1933 or state securities laws, and additional details will be available in the company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission. The full announcement is available through NEWMEDIAWIRE.