89bio, Inc. announced that it has entered into a Loan and Security Agreement with K2 HealthVentures for a private placement of term loans for proceeds of $100,000,000 on January 4, 2023. The funding will be raised in tranches, with first tranche consisting of $25,000,000 at closing date or January 4, 2023, two subsequent tranches totaling $25,000,000 to be funded upon the achievement of certain time-based, clinical and regulatory milestones, and a subsequent fourth tranche of up to $50,000,000 upon the company's request, subject to review by the Lenders of certain information from the company and discretionary approval by the lenders. The Term Loan matures on February 1, 2027; provided, that the maturity date may be extended to August 1, 2027 if the second and third tranches are funded and the Company achieves certain other financing milestones. The term loan bears a variable interest rate equal to the greater of (i) 8.45% and (ii) the sum of (a) the Prime Rate as reported in The Wall Street Journal plus (b) 2.25%. The company may prepay, at its option, all, but not less than all, of the outstanding principal balance and all accrued and unpaid interest with respect to the principal balance being prepaid of the Term Loan, subject to a prepayment premium to which the Lenders are entitled and certain notice requirements. The investors may convert any portion of the principal amount of the term loans then outstanding, up to an aggregate of $7,500,000 in principal amount, into shares of the Company's common stock. The company has also agreed to issue to the investor a warrant to purchase up to that number of shares of the Company's common stock.

On the same date, the company raised $25,000,000 in its first tranche.

On January 27, 2023, Company issued to investor a warrant to purchase up to 204,815 shares of the Company's common stock with a warrant price of $9.7649 per share. The number of shares of common stock for which the Warrant is exercisable and the warrant price are subject to certain proportional adjustments and will expire 10 years from the date of issuance.