Street Calls of the Week
Leap Therapeutics (LPTX) announced the completion of a $58.88 million private placement led by Winklevoss Capital to launch a digital asset treasury strategy. The biotechnology company, which develops targeted and immuno-oncology therapeutics, issued 15.2 million shares of common stock, pre-funded warrants for up to 80.8 million shares, and warrants for an additional 72 million shares at an exercise price of $0.5335 per share.
Winklevoss Capital will provide capital and strategic support for Leap’s digital asset treasury strategy, according to the company’s statement. A portion of the funds will support continued development of Leap’s therapeutic programs, including FL-501 and sirexatamab, with results from a Phase 2 colorectal cancer trial scheduled for presentation at the European Society for Medical Oncology Congress on October 19 in Berlin.
Under the lead investor agreement, Leap expanded its board of directors to 12 members, with Winklevoss Capital receiving rights to nominate two board members, including the board chairperson. The company expects to release additional updates regarding its treasury activities in the near term.
Parcrest served as placement agent for the financing. Morgan, Lewis & Bockius LLP provided legal counsel to Leap, while Cooley LLP advised Winklevoss Capital.
The securities were offered through a private placement under Section 4(a)(2) of the Securities Act of 1933 and Regulation D. The company agreed to file a registration statement with the Securities and Exchange Commission for resale of the shares and underlying warrant shares.