UK-based biotech company Bioneb has secured a funding commitment of up to £220m from American investment firm GEM Global Yield.

According to the agreement, New York-based GEM will make the investment over a period of 36 months.

Bioneb will use the funds to support the ongoing research and development activities for its Food and Drug Administration (FDA)-approved ultrasonic vibrating mesh drug delivery devices, medical formulations and FDA clinical trials.

The company also plans to scale up the production of the devices at its FDA-approved Vietnamese and Taipei facilities.

Subsequently, the production, distribution, and marketing of the formulations at the Netherlands, Canadian, and Californian facilities are also expected to increase.

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Bioneb said it will control the timing and maximum amount of drawdown under this facility and has no minimum drawdown obligation.

In accordance with the deal, the company will issue warrants to GEM to obtain approximately 9.9% of its outstanding common stock on a fully diluted basis.

The warrants will have an exercise price per share equal to the pro-rata portion of £300m valuation for the company.

Additionally, it will pay a fee equal to 2% of the size of capital commitment within 12 months.

Bioneb CEO and founder Nick Havercroft said: “This agreement with GEM helps to secure funding for continued growth and development of the company as we attempt to bring to market our breakthrough Covid suppressant formulation, which is having remarkable results in suppressing and eliminating the Covid virus if used in the early stages of any infection.

“The proven results, case studies, time kill graphs, and curves show that Bioneb’s patent-pending anti-viral formulation eliminates any virus and bacteria when inhaled with the drug delivery device or disbursed into built in environments such as schools, offices or mass transport systems, using the same technology in a sub-micron diffuser distribution unit.”