Kintara Therapeutics (NASDAQ:KTRA) Inc has entered into securities purchase agreements with certain healthcare-focused institutional investors to raise about $15 million in gross proceeds.
The company said it intends to use the net proceeds to fund its clinical studies, working capital, and other general corporate purposes. Also, the money may be used to fund acquisitions or investments in businesses, products, or technologies complementary to the company.
As part of a registered direct offering priced at-the-market under Nasdaq rules, the company will issue 12 million shares of its common stock (or common stock equivalents) and investor warrants to purchase up to an aggregate of 12 million shares of common stock.
READ: Kintara reports topline results from Phase 2 clinical study of VAL-083 for newly-diagnosed GBM patients
Kintara said each share of common stock (or common stock equivalent) is being sold together with one investor warrant to purchase one share of common stock at a combined offering price of $1.25. The investor warrants have an exercise price of $1.25 per share and are exercisable for three and one-half years from the date of issuance.
The closing of the offering is expected to occur on or about September 28, 2021, subject to the satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
Located in San Diego, Kintara is dedicated to the development of novel cancer therapies for patients with rare unmet medical needs. It is currently developing two Phase 3-ready therapeutics, VAL-083 for GBM and REM-001 for cutaneous metastatic breast cancer (CMBC).
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