Vor Biopharma Inc. (NASDAQ:VOR) shares are trading higher on Friday after the company announced it has entered into a securities purchase agreement for a private investment in public equity financing (PIPE).

What To Know: The company expects to generate about $55.6 million in gross proceeds from the PIPE. Vor plans to utilize these proceeds in order to fund clinical and preclinical development of its pipeline candidates and for general corporate purposes.

As part of the PIPE, Vor will issue a total of 55,871,260 shares of common stock and accompanying warrants to purchase an additional 69,839,075 shares, priced at $0.99425 per share and warrants.

If exercised for cash, the warrants would result in additional gross proceeds to Vor of up to approximately $58.5 million.

The PIPE was led by Reid Hoffman who believes in the potential of Vor's trem-cel therapy to treat acute myeloid leukemia. The therapy utilizes CRISPR/cas9 to modify the bone marrow of patients.

"Early data released by Vor suggest a potent effect, which now must be confirmed by future trials. I am delighted to support this company that uses a game-changing technology that will hopefully impact the lives of patients with this lethal cancer – but even more the trajectory of cancer therapy in general," said Hoffman.

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VOR Price Action: At the time of writing, Vor stock is trading 40.8% higher at $1.18, according to data from Benzinga Pro.

Image: Image: Emilian Danaila from Pixabay