Lixte Biotechnology raises $1.5 million in registered direct offering

PASADENA, Calif. - Lixte Biotechnology Holdings, Inc. (NASDAQ:LIXT), a micro-cap biotech company with a market capitalization of $7.04 million, announced Tuesday the closing of a $1.5 million registered direct offering with accredited investors. According to InvestingPro data, the stock has surged nearly 90% in the past week, reflecting strong investor interest.

The clinical-stage pharmaceutical company sold 974,026 shares of common stock at $1.54 per share, with some investors opting for pre-funded warrants priced at $1.53999 per warrant. The pre-funded warrants have an exercise price of $0.00001 and are immediately exercisable.

Spartan Capital Securities, LLC served as the exclusive placement agent for the transaction, which closed on July 8. TroyGould PC acted as counsel to Lixte, while Kaufman & Canoles, P.C. represented Spartan Capital.

The company plans to use the net proceeds for general corporate purposes and working capital, according to a press release statement.

The offering was conducted under an effective shelf registration statement on Form S-3 previously filed with the U.S. Securities and Exchange Commission, which was declared effective on May 2, 2024.

Lixte Biotechnology focuses on developing cancer therapies, with its lead clinical compound LB-100, a PP2A inhibitor that the company is investigating for potential enhancement of chemotherapies and immunotherapies. The company currently has proof-of-concept clinical trials in progress for ovarian clear cell carcinoma, metastatic colon cancer, and advanced soft tissue sarcoma. While the company is not yet profitable, InvestingPro analysis reveals several additional key insights about the company’s financial health and market position. Subscribers can access 6 more exclusive ProTips and detailed financial metrics.

In other recent news, Lixte Biotechnology Holdings, Inc. has announced a $5 million private placement agreement with accredited investors. The offering includes shares of common stock, Series B convertible preferred stock, and common warrants, with Spartan Capital Securities, LLC acting as the exclusive placement agent. The company plans to use the net proceeds for general corporate purposes and working capital. Additionally, Lixte Biotechnology has been granted an extension by the Nasdaq Hearings Panel to meet the exchange’s minimum stockholders’ equity requirement. This extension allows the company until July 3, 2025, to comply with Nasdaq’s standards, which include maintaining a minimum of $2.5 million in stockholders’ equity. The company is actively working on measures to achieve compliance during this period. However, there is no assurance from Lixte’s management regarding the success of these efforts. Investors are advised to keep a close watch on these developments as Lixte works towards maintaining its Nasdaq listing.

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