Armata Pharmaceuticals, Inc. (AMEX:ARMP) announced that it has entered into a securities purchase agreement to issue up to 8,710,800 common shares at a price of $2.87 per share and warrants for aggregate gross proceeds of $24,999,996 on January 27, 2020. The transaction will include participation from new investor Innoviva, Inc. (NasdaqGS:INVA). As a part of the transaction, Odysseas Kostas and Sarah Schlesinger from Innoviva, Inc. (NasdaqGS:INVA) will join the company's board of directors.

The transaction is expected to occur in two tranches. In the first tranche, the company will issue approximately 1,000,000 shares and warrants for gross proceeds of $2,800,000. In the second tranche, company will issue approximately 7,700,000 shares for gross proceeds of $22,200,000, subject to certain closing conditions and approval from the shareholders of the company.

The transaction has been approved by the board of directors of the company. The company expects to close the transaction in the first quarter of 2020.