Bio-Path Holdings Closes $4M Private Placement Priced At-Market Under Nasdaq Rules

HOUSTON, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Bio-Path Holdings, Inc. (NASDAQ: BPTH), a biotechnology firm specializing in the development of nucleic acid cancer drugs via their proprietary DNAbilize® liposomal delivery and antisense technology, recently concluded a significant private placement.

The private placement was conducted in accordance with Nasdaq rules at an at-the-market price, resulting in the issuance of 4,597,702 shares of common stock, along with series A and short-term series B warrants. These warrants allow for the purchase of up to 6,407,657 shares of common stock at an exercise price of $1.00 per share. The series A warrants have a validity period of five years post-Stockholder Approval Date, while the series B warrants will expire 24 months after the same date. H.C. Wainwright & Co. was the exclusive placement agent for this transaction.

Gross proceeds from this placement totaled approximately $4.0 million, prior to subtracting placement agent fees and other expenses related to the offering. Bio-Path intends to allocate the net proceeds for working capital and general corporate needs. It's important to note that the securities involved in this private placement were offered under Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D. These securities, including the shares of common stock underlying the warrants, are not registered under the Securities Act or state securities laws and thus cannot be sold or offered in the United States without proper registration or an applicable exemption.

In a related update, Bio-Path has canceled certain outstanding series A and B warrants issued in June 2024. The series A warrants allowed the purchase of up to 1,809,955 shares of common stock, and the series B warrants also permitted the purchase of up to 1,809,955 shares. With the closing of the current private placement, these warrants have been nullified.

Bio-Path Holdings is recognized for developing DNAbilize®, a unique technology that enables RNA interference (RNAi) nanoparticle drugs to be administered through simple intravenous infusions. Their leading product candidate, prexigebersen (BP1001), which targets the Grb2 protein, is currently in Phase 2 clinical trials for blood cancers. Additionally, BP1001-A, a modification of prexigebersen, is undergoing Phase 1/1b trials for solid tumors. The company's second major product, BP1002, targeting the Bcl-2 protein, is being tested for efficacy against both blood cancers and solid tumors, including lymphoma and acute myeloid leukemia. Bio-Path is also preparing to file an IND for BP1003, a novel inhibitor of the STAT3 protein, incorporating liposomes for effective delivery.

Bio-Path remains dedicated to advancing its pipeline of innovative cancer therapies. The company's strategic use of private placement funds is aimed at continuing their research and development efforts, which are critical to bringing new treatments to market. With a robust product lineup and ongoing clinical trials, Bio-Path is positioned to make significant strides in cancer treatment.