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PASADENA, Calif. - Lixte Biotechnology Holdings, Inc. (NASDAQ:LIXT), a clinical-stage pharmaceutical company with a market capitalization of $3.17 million, has entered into a definitive agreement with accredited investors for a $5 million private placement, according to a press release statement issued Tuesday. InvestingPro analysis shows the company maintains a strong liquidity position with more cash than debt on its balance sheet.
The clinical-stage pharmaceutical company’s offering, priced at market under Nasdaq rules, includes 2,382,084 shares of common stock (or pre-funded warrants), 3,573,130 shares of Series B convertible preferred stock, and 6,355,214 common warrants. The company’s stock, currently trading at $1.18, has experienced significant volatility, trading between $0.64 and $3.00 over the past 52 weeks.
The pre-funded warrants will be immediately exercisable at $0.00001, while the common warrants have an initial exercise price of $1.00 per share. The common warrants will be exercisable immediately and expire 60 months after the resale registration statement is declared effective.
Of the $5 million gross proceeds, $4 million will be paid at closing with the remaining $1 million to be paid when the resale registration statement is declared effective. The transaction is expected to close on or about July 2, subject to customary closing conditions.
Lixte plans to use the net proceeds for general corporate purposes and working capital. Spartan Capital Securities, LLC is serving as the exclusive placement agent for the private placement.
The securities are being sold in a private placement not involving a public offering and have not been registered under the Securities Act of 1933. They were offered only to accredited investors.
Lixte Biotechnology focuses on developing cancer therapies, with its lead clinical compound LB-100, a PP2A inhibitor that the company is evaluating in various cancer types including colon, small cell lung and sarcoma cancers. According to InvestingPro data, the company maintains a healthy current ratio of 4.26, indicating strong short-term financial stability. Discover 5 more exclusive InvestingPro Tips and comprehensive financial metrics to better evaluate LIXT’s investment potential.
In other recent news, Lixte Biotechnology Holdings, Inc. has been granted an extension by the Nasdaq Hearings Panel to regain compliance with the exchange’s minimum stockholders’ equity requirement. The company now has until July 3, 2025, to meet the necessary standards after previously being notified of non-compliance with Nasdaq’s continued listing rules. Lixte Biotechnology is required to maintain a minimum of $2.5 million in stockholders’ equity to continue its listing on the Nasdaq Capital Market. During this extension period, the company’s common stock and warrants will remain listed. Lixte is actively pursuing measures to achieve compliance with the equity requirement and other continued listing standards. The outcome of these efforts remains uncertain, and there is no guarantee that Lixte will be able to meet the requirements within the given timeframe. If the company fails to comply by the deadline, it could face delisting from the Nasdaq Capital Market. This information is based on the latest 8-K filing by Lixte Biotechnology Holdings with the U.S. Securities and Exchange Commission. Investors are encouraged to monitor the situation as the company works towards maintaining its listing status.
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