Windtree Therapeutics raises $253,333 through convertible notes and warrants

Published 03/07/2025, 19:34
Windtree Therapeutics raises $253,333 through convertible notes and warrants

Windtree Therapeutics, Inc. (NASDAQ:WINT), a micro-cap company with a market value of $3.4 million, entered into a series of note purchase agreements on June 27 and Wednesday, raising gross proceeds of $253,333 through the sale of convertible promissory notes and warrants, according to a statement made in a recent SEC filing. InvestingPro data shows the company has been quickly burning through cash, with a concerning current ratio of 0.25.

On June 27, the company issued two convertible promissory notes to investors with a principal amount of $58,140 for $50,000 and another note with a principal amount of $96,899 for $83,333. On Wednesday, Windtree entered into additional agreements with two purchasers, issuing two convertible promissory notes, each with a principal amount of $40,698 for $35,000.

All notes accrue interest at 14% annually and mature in 12 months. The notes are convertible into shares of Windtree’s common stock at a conversion price of $0.587 per share.

As part of the agreements, Windtree also issued warrants to the investors. Each warrant allows the purchase of common stock equal to 25% of the purchase price paid by the respective investor. One June investor received a warrant for $20,833 worth of shares, while other June investors received warrants for $12,500 worth of shares. Both July investors received warrants for $8,750 worth of shares. All warrants have an exercise price of $1.10 per share. The number of shares issuable upon exercise of a warrant will change if the exercise price is adjusted.

The securities were sold in reliance on exemptions from registration under Section 4(a)(2) of the Securities Act of 1933 and/or Rule 506(b) of Regulation D. The company stated that proceeds from the financing will be used for operational expenses, including funding a loan to Titan Environmental Services, Inc.

This information is based on a press release statement included in Windtree’s recent SEC filing.

In other recent news, Windtree Therapeutics has made several significant announcements that may interest investors. The company received a U.S. patent for its istaroxime intravenous formulation, providing protection until 2039, contingent upon regulatory approval. This development follows positive results from two Phase 2 studies in acute heart failure and early studies in cardiogenic shock. Additionally, Windtree reached the interim enrollment target for its Phase 2 SEISMiC C study of istaroxime in SCAI Stage C cardiogenic shock patients, which will help assess the drug’s safety and early efficacy signals. The company is also progressing towards a Phase 3 study in acute heart failure for the China market, fully funded by a regional partner.

In a strategic move, Windtree has entered into a binding letter of intent to acquire Titan Environmental Solutions for $35 million in preferred stock, along with additional notes totaling $1.75 million. Windtree has also received a non-binding offer to sell its preclinical oncology aPKCi inhibitor platform for $7 million upfront, with potential milestone payments and royalties. The company is considering these opportunities to enhance shareholder value by reducing cash burn and focusing on near-term growth. These developments reflect Windtree’s ongoing efforts to strengthen its portfolio and explore new avenues for profitability.

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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