Dogwood Therapeutics secures $4.8 million in direct offering

ATLANTA - Dogwood Therapeutics, Inc. (NASDAQ:DWTX), a biopharmaceutical company specializing in non-opioid pain treatments, announced today a registered direct offering to certain institutional investors. The company will sell 578,950 shares of common stock at $8.26 per share, with anticipated gross proceeds of approximately $4.8 million before fees and expenses. The offering is expected to close on March 14, 2025, subject to standard closing conditions. The offering price represents a significant discount to the current market price of $10.70, with the stock showing remarkable momentum, gaining over 140% in the past week alone, according to InvestingPro data.

The new capital is projected to extend the company’s operational runway through the first quarter of 2026. Dogwood plans to use the net proceeds to advance the clinical development of Halneuron®, its leading candidate for treating chemotherapy-induced neuropathic pain (CINP), as well as for working capital and general corporate purposes. InvestingPro analysis shows the company maintains a healthy cash position relative to debt, with a current ratio of 1.71, though it’s currently trading above its Fair Value estimate.

Maxim Group LLC is serving as the sole placement agent for the offering, which is being conducted under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on March 18, 2022, and declared effective on April 28, 2022. Detailed information about the offering will be available in the prospectus supplement and accompanying prospectus filed with the SEC.

Dogwood’s research pipeline includes Halneuron®, a non-opioid analgesic targeting the NaV 1.7 sodium channel, known to be effective in reducing pain transmission. The company expects to release interim data from the ongoing Phase 2b CINP trial of Halneuron® in the fourth quarter of 2025.

Additionally, Dogwood is developing an antiviral program with IMC-1 and IMC-2, proprietary combinations of anti-herpes antivirals and celecoxib, targeting diseases associated with herpesvirus reactivation, including fibromyalgia and Long-COVID. IMC-1 is set to enter Phase 3 trials as a treatment for fibromyalgia, while IMC-2 is progressing to Phase 2b trials for Long-COVID, with the FDA agreeing to fatigue reduction as the primary research endpoint. With a market capitalization of $14.25 million and analyst price targets ranging from $5 to $30, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

This press release statement serves as the basis for the information reported, and it should be noted that forward-looking statements involve risks and uncertainties. Dogwood cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. The company does not undertake any obligation to update forward-looking statements as required by law.

In other recent news, Dogwood Therapeutics, Inc. has announced a significant financial restructuring by converting a $19.5 million loan into preferred equity. This move eliminates all existing debt from Dogwood’s balance sheet, as the company’s main investor, CK Life Sciences Int’l., through its subsidiary Conjoint Inc., exchanged the loan for 284.2638 shares of Series A-1 Non-Voting Convertible Preferred Stock. Each preferred share is convertible into 10,000 shares of Dogwood’s common stock, pending necessary approvals. Greg Duncan, Dogwood’s Chairman and CEO, stated that this debt-for-equity swap underscores CK Life Sciences’ confidence in Halneuron®, Dogwood’s leading drug candidate for pain reduction. The restructuring allows Dogwood to focus on advancing its Phase 2b trial for chemotherapy-induced neuropathic pain without the burden of debt repayments. Halneuron® has shown promise in previous clinical trials, reducing cancer-related pain without addiction potential. Additionally, Dogwood is advancing its antiviral program, with IMC-1 moving into Phase 3 and IMC-2 preparing for Phase 2b research. These developments reflect Dogwood’s ongoing efforts to create alternative treatments for pain and fatigue-related disorders.

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