Moleculin Biotech secures $3.5 million in stock and warrant sale

HOUSTON - Moleculin Biotech, Inc. (NASDAQ:MBRX), a pharmaceutical company focusing on the development of treatments for tumors and viruses, has announced a new financing agreement with an institutional investor. According to InvestingPro data, the company’s stock has experienced significant volatility, declining over 86% in the past year, with its market capitalization currently standing at $3.83 million. The deal, which involves the sale of over 3.2 million shares and warrants, is set to close on or about February 26, 2025, with the expectation to raise gross proceeds of approximately $3.5 million.

The securities purchase agreement includes both a registered direct offering and a concurrent private placement. Shares of common stock, or pre-funded warrants in lieu thereof, are priced at $1.07 each. Additionally, warrants to purchase up to 6,542,058 shares of common stock are being offered in the private placement at the same price. While the company maintains a healthy current ratio of 2.08 and holds more cash than debt, InvestingPro analysis indicates the company is quickly burning through its cash reserves. These warrants will be exercisable following shareholder approval and are set to expire five years from the initial exercise date.

Roth Capital Partners (WA:CPAP) is serving as the exclusive placement agent for the Offering. The funds raised are intended for working capital and other general corporate purposes. The issuance of the common stock or pre-funded warrants is being carried out under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on July 1, 2024.

The private placement of the warrants and the underlying shares is relying on an exemption from registration under the Securities Act, indicating that the securities may not be offered or sold in the United States without registration or an exemption from registration requirements.

This Offering comes as Moleculin advances its lead program, Annamycin, for the treatment of relapsed or refractory acute myeloid leukemia (AML) and soft tissue sarcoma lung metastases. The company is also working on other drug candidates, including WP1066, an immune/transcription modulator for various cancers, and WP1122 for viral and cancer indications.

The information disclosed is based on a press release statement from Moleculin Biotech, Inc.

In other recent news, Moleculin Biotech, Inc. has announced several significant developments. The company has secured approximately $5.8 million from the exercise of existing warrants, with Roth Capital Partners advising on the transaction. The funds are intended for working capital and general corporate purposes. Moleculin has also received guidance from the U.S. Food and Drug Administration (FDA) allowing a 10% reduction in the size of its Phase 3 MIRACLE trial for Annamycin, aimed at treating acute myeloid leukemia (AML). This reduction aligns with the company’s goal for an accelerated drug approval timeline.

Furthermore, Moleculin has obtained its first European regulatory approval to begin recruiting for the Phase 3 AML trial, with Ukraine’s Ministry of Health granting the approval. The trial will evaluate Annamycin in combination with Cytarabine for patients with AML who have not responded to initial therapy. In another development, Moleculin has reached an agreement to amend certain terms of previously issued warrants, facilitating a proposed offering under specific conditions. This includes adjusting the exercise price of the warrants and paying an investor a cash fee of $750,000 upon the closing of the offering. These recent developments reflect Moleculin’s ongoing efforts to advance its clinical trials and financial strategies.

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