Moleculin Biotech reaches agreement to amend investor warrants

Published 10/02/2025, 15:24
Moleculin Biotech reaches agreement to amend investor warrants

Houston-based Moleculin Biotech, Inc., currently trading at $0.80 and showing a market capitalization of $2.4 million, has entered into an agreement with an investor to modify certain terms of previously issued warrants. This move, dated Sunday, allows the pharmaceutical company to proceed with a proposed offering under specific conditions. According to InvestingPro analysis, the company maintains a healthy cash position relative to its debt obligations.

The agreement, referred to as a 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. The new exercise price will match that of the Series C Warrants anticipated in the upcoming offering detailed in a Form S-1 registration statement. This development comes as the stock has experienced significant volatility, with InvestingPro data showing a 43% decline in the past week alone.

Additionally, the waiver introduces amendments to the warrants, incorporating specific sections that align with the terms of the Series C Warrants. It also changes the initial exercise date to coincide with the receipt of stockholder approval related to the Series C Warrants.

As part of the agreement, Moleculin Biotech has agreed to pay the investor a cash fee of $750,000 upon the closing of the proposed offering. This strategic move by Moleculin is aimed at facilitating the company’s ability to engage in a "Variable Rate Transaction (JO:TCPJ)," which was previously restricted.

This news comes directly from a recent SEC filing by Moleculin Biotech, which operates under the pharmaceutical preparations industry. The company’s common stock is traded on The NASDAQ Stock Market LLC under the ticker symbol (NASDAQ:MBRX).

In other recent news, Moleculin Biotech, Inc. has made significant strides with their late-stage pharmaceutical drug, Annamycin. The company recently amended its clinical trial protocol for the Phase 3 "MIRACLE" study of Annamycin in treating acute myeloid leukemia (AML), a move that will expedite the unblinding of preliminary primary efficacy data and safety/tolerability for the first 45 subjects in the trial. This amendment, agreed upon with the U.S. Food and Drug Administration (FDA), is expected to facilitate financing and potential strategic partnerships for the trial.

Furthermore, Moleculin received Institutional Review Board (IRB) approval for a pivotal Phase 3 trial of Annamycin. This approval marks a significant step towards the initiation of the MIRACLE study, set to begin enrollment in the first quarter of 2025. Annamycin has been granted Fast Track Status and Orphan Drug Designation by the FDA for the treatment of relapsed or refractory AML, indicating the potential benefits the drug may offer.

Regarding the company’s recent earnings call, Moleculin ended the quarter with $9.4 million in cash, which is expected to last into Q1 2025. The company plans to submit a rolling New Drug Application (NDA) by late 2028. CEO Walter Klemp and Dr. John Paul Waymack expressed confidence in the drug’s market potential, particularly for treating AML. These are the latest developments in Moleculin Biotech’s pursuit of advancing Annamycin through the clinical trial process.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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