Moleculin Biotech secures $5.8 million from warrant exercise

HOUSTON - Moleculin Biotech, Inc. (NASDAQ:MBRX), a pharmaceutical company specializing in treatments for tumors and viruses, has initiated the exercise of existing warrants which is expected to generate approximately $5.8 million in gross proceeds. According to InvestingPro data, this funding comes at a crucial time as the company has been quickly burning through cash, though it maintains more cash than debt on its balance sheet. These warrants, initially issued in December 2023 and August 2024, are being exercised at a reduced price of $1.00 per share.

The transaction involves the immediate exercise of warrants for up to 5,828,570 shares of common stock. In exchange, the company will issue new unregistered warrants for the purchase of up to 11,657,140 shares at a price of $0.75 per share, exercisable immediately and valid for five years from the date of issue. This financing comes as the stock has experienced significant volatility, with InvestingPro showing a 94.5% decline over the past year and a current market capitalization of just $8.62 million.

Roth Capital Partners (WA:CPAP) is serving as the financial advisor for this transaction, which is slated to close around February 14, 2025, contingent on customary closing conditions. Moleculin intends to allocate the net proceeds towards working capital and general corporate purposes.

The new warrants were offered through a private placement under an exemption from registration requirements of the Securities Act of 1933. They, along with the shares of common stock issuable upon exercise, have not been registered under the Act and are subject to restrictions on resale in the U.S. unless registered with the SEC or an exemption applies. Moleculin has committed to filing a registration statement with the SEC for the resale of shares from the new warrants.

Moleculin’s portfolio includes Annamycin, a next-generation anthracycline undergoing development for the treatment of relapsed or refractory acute myeloid leukemia (AML) and soft tissue sarcoma lung metastases. The company is also advancing WP1066, an immune/transcription modulator for various cancers, and WP1122, an antimetabolite aimed at treating viruses and certain cancers. With a current ratio of 2.08 and an Altman Z-Score indicating financial stress, investors can access comprehensive analysis and 16 additional key insights through InvestingPro’s detailed research reports.

This press release is sourced from a statement by Moleculin Biotech and does not constitute an offer to sell or a solicitation of an offer to buy any securities.

In other recent news, Moleculin Biotech, Inc. has made significant strides in its clinical trials and investor relations. The U.S. Food and Drug Administration (FDA) has given the green light for a reduction in the size of Moleculin’s Phase 3 clinical trial, known as the MIRACLE trial, which is evaluating the drug Annamycin for the treatment of acute myeloid leukemia (AML). This development supports Moleculin’s goal of an accelerated new drug approval timeline.

In addition to the FDA’s approval, Moleculin has also received the first European regulatory approval from Ukraine’s Ministry of Health to begin recruiting for the MIRACLE trial. The trial is set to be conducted globally, with sites in the U.S., Europe, and the Middle East.

Moleculin has also reached an agreement with an investor to modify certain terms of previously issued warrants, allowing the company to proceed with a proposed offering under specific conditions. The waiver involves the adjustment of the exercise price of the warrants, which grant the right to purchase up to 5,828,570 shares of Moleculin’s common stock.

Lastly, Moleculin has announced an amendment to its MIRACLE trial protocol, which will expedite the unblinding of preliminary primary efficacy data and safety/tolerability for the first 45 subjects in the trial. This early data release is anticipated to facilitate financing and potential strategic partnerships for the trial. These are the latest developments in Moleculin’s ongoing efforts to advance its clinical trials and investor relations.

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