S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
BOSTON and LONDON - Akari Therapeutics Plc (NASDAQ:AKTX), a biotech firm focusing on precision antibody drug conjugates for cancer treatment, announced the successful pricing of a private placement expected to generate about $7.6 million in gross proceeds. The transaction involves the sale of 6,637,626 unregistered American Depository Shares (ADSs) and accompanying warrants, priced at $0.87 per ADS, matching the Nasdaq closing price on February 28, 2025. According to InvestingPro data, the stock is trading near its 52-week low, having declined over 76% in the past six months, though analysis suggests the shares may be undervalued at current levels.
The company’s President and CEO, Dr. Samir (CSE:SAM) R. Patel, expressed gratitude for the support from existing investors, including participation from the Board of Directors. The funding aims to advance Akari’s novel spliceosome inhibitor payload ADC technology and seek licensing partners for its TROP-2 ADC program. With a market capitalization of just $21.5 million and a concerning current ratio of 0.29, InvestingPro analysis reveals the company’s urgent need for capital, highlighting several financial health challenges. InvestingPro subscribers can access 11 additional key insights about Akari’s financial position.
Investors also received Series A and Series B Warrants exercisable at the same price of $0.87 per ADS, with the Series A Warrants valid for one year and Series B Warrants for five years post-issuance. The private placement is anticipated to close around March 5, 2025, subject to customary closing conditions.
The ADSs and warrants are offered under the Securities Act of 1933, as amended, and have not been registered under the Act or state securities laws, thus limiting their sale to registered or exempt transactions.
Proceeds from the offering, after deducting fees and expenses, will serve as working capital and support general corporate functions. Paulson Investment Company LLC is the placement agent for this financing round.
Akari Therapeutics is known for its innovative approach to developing bi-functional antibody drug conjugates targeting a variety of cancers. Its lead candidate, AKTX-101, has shown promise in preclinical studies, demonstrating potential advantages over existing ADCs, including reduced off-target toxicity and resistance.
The information presented in this article is based on a press release statement from Akari Therapeutics Plc. For comprehensive financial analysis and detailed metrics on Akari’s performance, visit InvestingPro, where subscribers can access exclusive insights, Fair Value estimates, and advanced financial health indicators.
In other recent news, Akari Therapeutics has announced several significant changes in its executive team. Dr. Samir R. Patel has been appointed as the new Chief Executive Officer, a role he has been fulfilling on an interim basis since May. Concurrently, Akari has added Abizer Gaslightwala to its Board of Directors, bringing extensive experience from his previous roles at Jazz Pharmaceuticals (NASDAQ:JAZZ) and other major firms. The company has also appointed Dr. Torsten Hombeck as Chief Financial Officer, marking his return to Akari after previously serving in the same position until June 2023. Dr. Hombeck’s background includes substantial experience in finance and capital markets within the biotech industry.
These leadership changes align with Akari’s strategic focus on advancing its proprietary antibody drug conjugate (ADC) platform, which is part of its broader portfolio that includes investigational nomacopan. The company recently completed a merger with Peak Bio, which Dr. Patel believes will support Akari’s growth and value creation. Additionally, the resignation of board member Michael Grissinger has been acknowledged, with the company expressing gratitude for his service. These developments have been communicated to investors and stakeholders through official press releases and filings with the Securities and Exchange Commission.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.