Kineta Announces Equity Securities Exchange with Investor

Kineta, Inc. (OTC Pink:KANT), a pharmaceutical company with a market capitalization of $4.28 million and current trading price of $0.35, has entered into a securities exchange agreement with an existing investor, as disclosed in a recent SEC filing. On March 7, 2025, the company agreed to issue 1,880,342 shares of its common stock and a pre-funded warrant in exchange for cancelling certain outstanding warrants held by the investor. According to InvestingPro data, the company maintains a stronger cash position than debt on its balance sheet, though its overall financial health score indicates challenges ahead.

The transaction involves the issuance of 1,225,323 shares of common stock and a pre-funded warrant to purchase up to 655,019 additional shares. This exchange is for the cancellation of prior warrants that would have allowed the investor to purchase up to 2,315,387 shares at prices ranging from $3.25 to $4.08. The cancelled warrants will not be reissued. The company’s stock has shown significant volatility, with InvestingPro analysis revealing a beta of -3.25, indicating strong counter-market movements.

As part of the agreement, the investor has also committed to voting in favor of the proposals related to Kineta’s planned merger with TuHURA Biosciences, Inc., as outlined in a Merger Agreement dated December 11, 2024. The investor will ensure their shares are counted for quorum and will vote them in support of the merger at the upcoming stockholders meeting.

The shares were issued in reliance on an exemption from registration under Section 3(a)(9) of the Securities Act, meaning they are not registered under the Securities Act and cannot be sold in the U.S. without registration or an exemption.

This strategic move comes ahead of the proposed merger between Kineta and TuHURA Biosciences, which is intended to expand the company’s capabilities in the pharmaceutical sector. The merger is subject to approval by Kineta’s stockholders and other customary closing conditions. With a current ratio of 0.19 and a six-month price decline of nearly 48%, investors seeking deeper insights into Kineta’s financial position can access additional analysis and 8 more key ProTips through InvestingPro’s comprehensive platform.

The full terms and conditions of the Exchange Agreement and the Pre-Funded Warrant are detailed in the exhibits attached to the SEC filing. This filing provides investors and stakeholders with information about the company’s latest financial maneuvers and its forthcoming merger, which could have significant implications for its future operations and market positioning.

This report is based on information from a press release statement.

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