Bullish indicating open at $55-$60, IPO prices at $37
HOUSTON - Moleculin Biotech, Inc. (NASDAQ:MBRX), a clinical stage pharmaceutical company, has announced the pricing of a public offering aiming to raise approximately $5.5 million, with the potential to garner an additional $11.0 million if associated warrants are fully exercised. The offering includes over 2.4 million shares of common stock and warrants, with a combined public offering price of $2.23 per share and accompanying warrants.
The Series A and Series B warrants, priced at $2.23, will be exercisable subject to shareholder approval, with Series A expiring two years post-approval or 60 days after interim data from the MIRACLE trial is released, whichever is earlier. Series B will expire five years post-approval or six months after final topline data from the MIRACLE trial is released, again, whichever comes first. The offering is expected to close around August 19, 2024, contingent on customary closing conditions.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering. The net proceeds are intended for advancing Moleculin's drug candidates, including Annamycin through clinical development, furthering preclinical studies, sponsoring research, and general working capital.
In conjunction with the offering, Moleculin has agreed to amend existing warrants issued in December 2023, reducing the exercise price to $2.23 per share, effective upon the offering's closure. These amended warrants will be exercisable following shareholder approval and will expire five years from the approval date.
Annamycin, Moleculin's lead drug candidate, is designed to avoid multidrug resistance and eliminate the cardiotoxicity associated with current anthracyclines. It is currently under development to treat relapsed or refractory acute myeloid leukemia and soft tissue sarcoma lung metastases.
The securities are being offered pursuant to an effective registration statement with the Securities and Exchange Commission (SEC). The final prospectus, when available, will be accessible on the SEC's website.
This press release statement is the basis for the information provided, and it does not constitute an offer to sell or a solicitation of an offer to buy the securities described.
In other recent news, Moleculin Biotech has made significant strides in advancing its drug candidate, Annamycin, for the treatment of acute myeloid leukemia (AML). The company reported strong trial results for MB-106, which led to a reaffirmation of its Buy rating from Roth/MKM. In the trial, 41% of patients achieved complete remission, a result that was consistent across all patients, regardless of their prior therapies.
Moleculin Biotech is also planning to raise $12 million to further support its activities, as the company reported having $10.8 million in cash at the end of the second quarter of 2024. This funding is expected to sustain operations until the fourth quarter of 2024.
The company has also announced plans to advance Annamycin to a Phase 3 clinical trial, named "MIRACLE," following productive discussions with the U.S. Food and Drug Administration (FDA). The trial will evaluate Annamycin in combination with cytarabine for AML patients who haven't responded to initial therapy.
In addition, Moleculin Biotech has secured a patent for Annamycin, ensuring market exclusivity until at least 2040. This recent development aligns with the company's strategy to sustain and expand its research and development efforts.
InvestingPro Insights
As Moleculin Biotech, Inc. (NASDAQ:MBRX) endeavors to raise capital through its latest public offering, the company's financial health and market performance are pivotal for potential investors. According to InvestingPro data, Moleculin Biotech holds a market capitalization of $5.15 million, reflecting its size and market value as of the latest figures. The company's price-to-book ratio stands at 0.29, suggesting that the stock may be undervalued when considering the company's assets relative to its share price. Moreover, Moleculin's stock is trading near its 52-week low, with the price at the previous close marked at $2.23.
An InvestingPro Tip highlights that Moleculin Biotech holds more cash than debt on its balance sheet, which could be a reassuring sign for investors looking for financial stability. Another tip indicates that the company's liquid assets exceed its short-term obligations, providing a cushion for near-term financial needs. However, it's important to note that analysts do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month, with a price total return of -47.53%.
For investors seeking a comprehensive analysis, InvestingPro offers additional tips on Moleculin Biotech. There are 14 additional InvestingPro Tips available, which can provide deeper insights into the company's financial health and market performance. These tips can be accessed by visiting the InvestingPro platform for Moleculin Biotech at https://www.investing.com/pro/MBRX.
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