Aptose sets $8 million target in stock and warrant offering

Published 22/11/2024, 14:06
Aptose sets $8 million target in stock and warrant offering

SAN DIEGO and TORONTO - Aptose Biosciences (NASDAQ:APTO) Inc. (NASDAQ: APTO, TSX: APS), a clinical-stage company specializing in precision oncology treatments, announced today the pricing of a public offering aimed at raising approximately $8 million. The offering includes the sale of 40 million shares of common stock and warrants for an additional 20 million shares, priced at $0.20 for each share and accompanying warrant.

The company, which is focused on developing oral targeted agents for hematologic malignancies, stated that the warrants will be immediately exercisable at $0.25 per share and will expire five years from the date of issuance. The expected closing date of the offering is set for November 25, 2024, contingent upon customary closing conditions.

Aptose has expressed intentions to allocate the net proceeds from this offering towards working capital and general corporate purposes. A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the transaction.

The securities are being offered pursuant to a registration statement on Form S-1, which was filed with the U.S. Securities and Exchange Commission (SEC) on August 2, 2024, and became effective on November 21, 2024. The offering is only available through a prospectus that is part of the registration statement.

Aptose Biosciences' pipeline includes tuspetinib (TUS), a lead clinical-stage oral kinase inhibitor that has shown promise as both a monotherapy and in combination therapy for patients with relapsed or refractory acute myeloid leukemia (AML). The drug is also being considered for use in frontline triplet therapy for newly diagnosed AML patients.

The company's announcement today is based on a press release statement and is a strategic move to secure funding for its continued operations and research in the field of oncology. Aptose highlights its dedication to addressing unmet medical needs through the development of precision medicines. Investors and interested parties can obtain a copy of the final prospectus, when available, from the SEC's website or directly from A.G.P./Alliance Global Partners.

In other recent news, Aptose Biosciences Inc. has secured a $10 million convertible loan from Hanmi Pharmaceutical (TADAWUL:2070) Co. Ltd. The loan is earmarked to support the development of tuspetinib, an oral kinase inhibitor targeting acute myeloid leukemia (AML). The funds will primarily be used to advance clinical trials, specifically a triple drug combination trial with tuspetinib for newly diagnosed AML patients. The outcome of the trial will determine whether the loan is converted as a prepayment for future milestone obligations or repaid. Aptose and Hanmi are also in the process of negotiating a new co-development collaboration agreement to further accelerate the clinical development of tuspetinib. This comes on the heels of Aptose's licensing of tuspetinib from Hanmi in November 2021. These developments highlight Aptose's commitment to advancing its therapeutic pipeline.

InvestingPro Insights

Aptose Biosciences Inc. (NASDAQ: APTO, TSX: APS) is navigating challenging financial waters as it seeks to advance its oncology pipeline. Recent InvestingPro data reveals that the company's market capitalization stands at a modest $2.44 million, reflecting the early-stage nature of its clinical programs and the competitive landscape in precision oncology.

The company's stock performance has been mixed, with a 2.56% gain over the past week and month, contrasting with a more substantial year-to-date decline of 21.57%. This volatility is not uncommon for clinical-stage biotech firms, whose fortunes can swing dramatically based on clinical trial results and regulatory decisions.

InvestingPro Tips highlight some financial challenges facing Aptose. The company suffers from weak gross profit margins, which is typical for pre-revenue biotech companies investing heavily in research and development. Additionally, the valuation implies a poor free cash flow yield, underscoring the company's current focus on cash burn for clinical development rather than generating positive cash flows.

It's worth noting that Aptose does not pay a dividend to shareholders, which is consistent with its status as a growth-oriented, clinical-stage company reinvesting all available funds into its drug development programs. This aligns with the company's recent $8 million public offering, aimed at bolstering its working capital and supporting ongoing research efforts.

Investors considering Aptose should be aware that InvestingPro offers additional tips and insights that could provide a more comprehensive view of the company's financial health and prospects. These insights could be particularly valuable given the upcoming earnings report, expected on November 22, 2024, which may shed light on the company's progress and cash position following this offering.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.