Xilio Therapeutics announces public offering of warrants

WALTHAM, Mass. - Xilio Therapeutics, Inc. (NASDAQ:XLO), a biotech firm focused on developing immuno-oncology therapies, announced today its initiation of a public offering of warrants. The offering includes pre-funded and Series A, B, and C warrants to purchase shares of common stock. The completion and terms of the offering are subject to market conditions, with no guarantee of its size or finalization. The company, currently valued at $55.41 million, has maintained a strong financial position with more cash than debt on its balance sheet, according to InvestingPro data.

The proceeds from the offering are intended to further the development of Xilio’s product candidates, as well as to support working capital and other general corporate needs. Leerink Partners is the offering’s sole bookrunner. The timing of this offering follows a notable 21% stock price increase over the past week, though InvestingPro analysis indicates the company is not yet profitable, with an EBITDA of -$55.26 million in the last twelve months.

The securities are offered under a shelf registration statement filed with the SEC on March 11, 2025, and declared effective on May 8, 2025. The offering is made solely by prospectus supplement and accompanying prospectus forming part of the registration statement.

A preliminary prospectus supplement detailing the offering terms is expected to be filed with the SEC and made available on its website. Interested parties can obtain these documents from Leerink Partners upon release.

Xilio Therapeutics specializes in creating tumor-activated therapies aimed at enhancing cancer treatment efficacy while minimizing systemic side effects. The company uses its proprietary platform to develop a pipeline of tumor-activated molecules designed to concentrate anti-tumor activity within the tumor microenvironment. According to InvestingPro analysis, analysts have set a target price of $4.00 for the stock, suggesting significant potential upside from current levels. InvestingPro subscribers have access to 8 additional key insights about XLO’s financial health and market position.

This announcement contains forward-looking statements, including the anticipated completion and terms of the offering. These statements are subject to market uncertainties and the risks inherent in Xilio’s research and development activities. The company’s most recent filings with the SEC provide further detail on these risks.

The press release statement serves as the basis for this article. It should be noted that the offering is not yet a confirmed sale and is contingent upon market conditions and regulatory requirements.

In other recent news, Xilio Therapeutics announced its fourth-quarter and full-year financial results for 2024, revealing a solid cash position with $55.3 million in cash and cash equivalents as of December 31, 2024. The company’s license revenue for the fourth quarter was reported at $1.7 million, contributing to a total of $6.3 million for the year, primarily from an agreement with Gilead Sciences. In a strategic move, Xilio has entered a collaboration with AbbVie to develop novel tumor-activated immunotherapies, which includes a $52.0 million upfront payment and potential future payments totaling approximately $2.1 billion. Additionally, Xilio has signed a sales agreement with Leerink Partners, allowing the company to offer up to $50 million of its common stock in "at the market" transactions. This agreement is part of Xilio’s efforts to strengthen its financial position. The company also received a notification from the Nasdaq Stock Market regarding a potential delisting due to its stock trading below the required minimum bid price. Xilio has been granted a 180-day period, ending on October 1, 2025, to regain compliance with the Nasdaq’s minimum bid requirement. These developments highlight Xilio’s ongoing efforts to advance its pipeline and secure financial stability.

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