Completion of Series C Financing of JPY 2.38 Billion

Tokyo, Japan – July 22, 2024 – Hirosaki LI Inc. (now CynosBio Inc.) today announced the completion of its Series C financing, raising JPY 2.38 billion (approximately USD 15 million) through a third-party allotment to existing and new investors. The round was co-led by Cybernics Excellence Japan Fund I and Axil Life Science & Healthcare Fund II, joined by multiple institutional and individual investors.

The proceeds will be primarily used to strengthen the company’s domestic R&D and manufacturing capabilities, particularly to:

• Advance the Phase 3 pivotal trial of IK-01, an autologous cultured chondrocyte product for knee osteoarthritis; and
• Expand manufacturing capacity for Sakracy®, the company’s approved ocular regenerative medicine product.

While the immediate focus remains on Japan operations, this financing also lays the foundation for CynosBio’s future global expansion, building on its track record of innovation in regenerative medicine.