Moleculin Biotech prices $5.9 million public offering

HOUSTON - Moleculin Biotech, Inc. (NASDAQ:MBRX), currently valued at $8.24 million in market capitalization, announced today the pricing of a public offering expected to raise approximately $5.9 million in gross proceeds before deducting fees and expenses. According to InvestingPro analysis, this funding comes at a crucial time as the company has been quickly burning through cash, with negative free cash flow of $21.72 million in the last twelve months.

The offering consists of 16,080,000 shares of common stock (or pre-funded warrants) and Series E warrants to purchase up to 48,240,000 shares, priced at $0.37 per share and accompanying warrants. The Series E warrants will have an exercise price of $0.37 per share, will be exercisable upon stockholder approval, and will expire five years after the initial exercise date.

The transaction is expected to close on or about Monday, subject to customary closing conditions. Roth Capital Partners is serving as exclusive placement agent, while Maxim Group LLC is acting as financial advisor to the company.

According to the press release statement, Moleculin plans to use the net proceeds to advance its drug candidate Annamycin and two other drug portfolios through clinical development, move the remainder of its portfolio through preclinical studies, sponsor research, and for working capital.

Moleculin is a Phase 3 clinical stage pharmaceutical company focused on developing treatments for hard-to-treat tumors and viruses. Its lead program, Annamycin, is currently in development for treating relapsed or refractory acute myeloid leukemia and soft tissue sarcoma lung metastases.

The securities are being offered pursuant to a registration statement on Form S-1 that was declared effective by the U.S. Securities and Exchange Commission on Today.

In other recent news, Moleculin Biotech, Inc. has reported several significant developments. The company announced that the U.S. Food and Drug Administration has agreed to its proposal for a pediatric study of its cancer drug Annamycin, intended for children with relapsed/refractory acute myeloid leukemia. Moleculin plans to begin this pediatric clinical study in the second half of 2027. Additionally, positive results were revealed from a U.S. Phase 1B/2 clinical trial of Annamycin for treating soft tissue sarcoma lung metastases, showing improved survival rates and no cardiotoxicity, which is notable for similar drugs.

Furthermore, the company received a non-compliance notice from Nasdaq due to not meeting the minimum stockholders’ equity requirement for continued listing. Moleculin has 45 days to submit a compliance plan, which, if accepted, could provide an extension of up to 180 days to regain compliance. In financial updates, Moleculin’s Q1 2025 earnings call highlighted an $8 million cash position, expected to fund operations into Q3 2025, and ongoing efforts to raise an additional $15 million to sustain operations through Q1 2026.

The company is also advancing its Phase 3 MIRACLE trial for Annamycin, with the first patient treated and clinical trial sites expanded to 38 locations worldwide. Lastly, Moleculin received European Medicines Agency approval for Annamycin in nine EU countries, further supporting its global clinical efforts.

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