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Rein Therapeutics, Inc. (NASDAQ:RNTX) announced Thursday it has received a third pre-paid advance of $1 million from YA II PN, Ltd., known as Yorkville, under an existing financing agreement. The disclosure was made in a statement based on a filing with the Securities and Exchange Commission. The micro-cap biotech company, currently valued at $33.33 million, has seen its stock decline nearly 47% year-to-date according to InvestingPro data, highlighting the challenging environment for early-stage pharmaceutical companies.
According to the SEC filing, the advance is part of a pre-paid advance agreement first established on July 29, 2025, allowing Rein Therapeutics to request up to $6 million in total over a 12-month period. Each advance is purchased by Yorkville at 95% of its face value, resulting in net proceeds of $950,000 per $1 million advance. The advances accrue annual interest at 8%, which may increase to 18% if certain default events occur. All advances are due for repayment on the 12-month anniversary of their issuance. InvestingPro analysis reveals the company’s current ratio of 0.86 suggests tight liquidity, with short-term obligations exceeding liquid assets.
Rein Therapeutics previously received two advances of $1 million each, with the first on July 29, 2025, and the second on September 8, 2025. For these advances, the company issued 953,765 and 927,107 shares of its common stock, respectively, to Yorkville, with the shares offsetting $1,007,342 and $1,003,573 of outstanding principal and accrued interest under the respective advances. The average price per share for the issuances was approximately $1.0562 and $1.0825.
The third advance, completed Thursday, brings the total amount advanced to $3 million under the agreement. The transaction was conducted as a private placement under an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, with no underwriter involved. With the stock currently trading at $1.44, InvestingPro analysis suggests the company is trading above its Fair Value, with additional metrics and insights available to subscribers.
This information is based on a statement from Rein Therapeutics filed with the SEC.
In other recent news, Rein Therapeutics has received approval from the European Medicines Agency to commence its Phase 2 RENEW clinical trial for LTI-03 in idiopathic pulmonary fibrosis patients in Germany and Poland. This follows previous authorization from the UK’s Medicines and Healthcare products Regulatory Agency, expanding the trial’s global reach. Additionally, Rein Therapeutics reported positive findings in a study published in the journal iScience, where its lead drug candidate LTI-03 demonstrated promising anti-fibrotic activity in lung tissue from IPF patients. The study indicated the drug’s potential to reduce scarring pathways and lower collagen production and inflammatory signals.
Meanwhile, H.C. Wainwright has initiated coverage on Rein Therapeutics with a Buy rating and a $10 price target, citing the company’s promising pipeline and market opportunities. The firm also reiterated its Buy rating, maintaining optimism about developments that could resume U.S. clinical trial sites. These recent developments reflect Rein Therapeutics’ ongoing efforts in advancing treatment options for idiopathic pulmonary fibrosis.
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