FibroBiologics (FBLG) said Monday it entered into a standby equity purchase agreement allowing it to sell up to $25 million of its common stock over two years to an investment fund managed by Yorkville Advisors Global.

The first $15 million would be released in three equal tranches to be evidenced by convertible promissory notes, with the first tranche of $5 million funded upon signing of the agreement and the next two tranches to fund following the filing of a registration statement for the resale of the shares issuable to Yorkville, and upon the effectiveness of the registration statement and receipt of shareholder approval, FibroBiologics said.

The company said that subject to certain conditions, it can sell $10 million more of its common stock to the fund while the convertible promissory notes remain outstanding.

The initial advances will allow FibroBiologics to complete its first-in-human trial for diabetic foot ulcers and investigational new drug-enabling studies for its psoriasis program, Chief Executive Pete O'Heeron said.