Rakovina Therapeutics Inc (TSX-V:RKV) has announced plans to issue roughly 30 unsecured $50,000 convertible debenture units to a select group of investors for gross proceeds of about $1.5 million as it revealed its financial results for the fourth quarter and full year 2022.
The debenture can be converted to common shares at a $0.20 share conversion price. Each debenture will be accompanied by 100,000 non-transferable share purchase warrants exercisable into one common share at $0.15 per share for 30 months.
"Securing this debenture financing on these favorable terms in these challenging financial markets when our shares have been trading in the $0.13-0.15 range was strategic to reduce our cost of capital and minimize dilution. We are pleased to have the support of our investors as these funds will allow us to continue our research, development, and IND-enabling activities beyond the next twelve months," said David Hyman, Rakovina Therapeutics’ chief financial officer in a statement.
Looking at the company's progress during 2022, Rakovina Therapeutics executive chairman, Jeffrey Bacha commented: “Our recent advancements are a testament to the dedication of our research team and to the potential of our portfolio of novel DNA-damage response inhibitor technologies to meet this challenge.”
On 19 April 2023, Rakovina presented new preclinical in vitro and in vivo data at the American Association of Cancer Research (AACR) annual meeting. The data demonstrated the potential of its kt-3000 series to treat resistant cancers such as Ewing sarcoma, a rare childhood tumor.
The company presented preclinical data at the 34th EORTC-NCI-AACR on Molecular Targets and Cancer Therapeutics in Barcelona, Spain, on 28 October 2022. It also presented preclinical data supporting the potential broad anti-cancer activity of its novel kt-4000 series drug candidates at the AACR annual meeting on 11 April 2022.
The company received $122,865 in non-dilutive funding from the National Research Council of Canada Industrial Research Assistance Program on 22 March 2023.
The company's recent developments show progress in the research, development, and potential of its portfolio of novel DNA-damage response inhibitor technologies and its financing plans will allow the company to continue its research and development beyond the next year, said Rakovina CFO David Hyman.
Looking at the numbers, as of December 31, 2022, Rakinova had positive working capital of approximately $962,553. For the three and 12 months ending December 31, 2022, the company reported a net loss of $647,426 and $2,791,234, respectively, with research and development operating expenses at $497,739 and $1,949,201 respectively.
Contact the author at jon.hopkins@proactiveinvestors.com