Moleculin Closes $16.5M Public Offering

Moleculin Biotech, Inc., a company in Phase 3 of clinical trials with a diverse portfolio of drug candidates targeting difficult-to-treat tumors and viruses, recently closed a public offering that raised gross proceeds of approximately $5.5 million. This offering comprised 2,466,368 shares of common stock (or equivalents) and was accompanied by Series A and Series B warrants, each priced at $2.23 per share. If the warrants are fully exercised, an additional $11.0 million could be raised.

The Series A warrants have an exercise price of $2.23 and become exercisable immediately upon shareholder approval. They will expire either two years from the date of approval or 60 days following the release of interim data from the MIRACLE trial, if the complete remission rate is higher than the placebo. Similarly, the Series B warrants also priced at $2.23, will become exercisable upon shareholder approval and will expire either five years from the approval date or six months post-release of final data from the MIRACLE trial that shows a statistically significant improvement in the primary efficacy endpoint.

H.C. Wainwright & Co. served as the exclusive placement agent for this offering, while Roth Capital Partners LLC and Maxim Group LLC acted as financial advisors. The net proceeds from this funding will be allocated toward advancing Moleculin's drug portfolios through various stages of clinical development, sponsoring research at MD Anderson and HPI, and fulfilling working capital needs.

Moleculin's lead program, Annamycin, is under development for treating relapsed or refractory acute myeloid leukemia (AML) and soft tissue sarcoma lung metastases. Annamycin is a next-generation anthracycline designed to bypass multidrug resistance and avoid the cardiotoxicity commonly seen with current anthracyclines. The company is also working on WP1066, an immune/transcription modulator targeting brain tumors and pancreatic cancers, among others. Additionally, Moleculin is developing WP1122, an antimetabolite for potential virus treatments and certain cancers.

The securities for this offering were registered under a previously effective registration statement declared by the SEC on August 15, 2024. The final prospectus related to this offering is available on the SEC's website. In conjunction with this offering, Moleculin also amended certain existing warrants issued in December 2023, reducing their exercise price to $2.23 per share.

Moleculin Biotech, Inc. is advancing a pipeline of therapies for challenging tumors and viral infections. The company is focusing on innovative solutions like Annamycin for AML and soft tissue sarcoma lung metastases, WP1066 for various cancers, and WP1122 for viruses and cancer indications. These efforts aim to provide new treatment options for diseases with limited effective therapies.