Clinical-stage Biopharmaceutical Company Announces $3.2M Registered Direct Offering
GT Biopharma Announces $3.2 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules.
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GT Biopharma, Inc. (NASDAQ: GTBP) recently announced a major development with the entry into definitive securities purchase agreements for a registered direct offering priced at-the-market under Nasdaq rules. The company disclosed that it has secured the purchase and sale of 740,000 shares of its common stock at a purchase price of $4.35 per share, totaling approximately $3.2 million in gross proceeds before deducting placement agent’s fees and other offering expenses.
Overview of the Offering
The primary structure of the offering includes both a registered direct offering and a concurrent private placement:
Registered Direct Offering: GT Biopharma will sell 740,000 shares of common stock at $4.35 per share.
Private Placement: Alongside the direct offering, GT Biopharma will issue warrants to purchase up to 740,000 shares of common stock. These warrants are priced at $4.35 per share, are exercisable immediately, and have a term of five years from the date of issuance.
The closing of the offering is anticipated to occur on or about May 23, 2024, assuming all customary closing conditions are met. Roth Capital Partners serves as the exclusive placement agent for this offering, ensuring that all procedures and regulatory requirements are adhered to throughout the process. GT Biopharma intends to use the net proceeds from this offering for general corporate purposes. This strategic financial move comes as part of their broader efforts to bolster financial stability and ensure the continuous development and commercialization of their innovative immuno-oncology therapeutic products based on their proprietary TriKE® NK cell engager platform. The securities involved in the registered direct offering, excluding the warrants and the shares of common stock underlying the warrants, are being offered pursuant to a “shelf” registration statement on Form S-3 (File No. 333-267870) previously filed with the Securities and Exchange Commission (SEC) and declared effective on October 20, 2022. The offering is conducted solely by means of a prospectus, including a prospectus supplement, forming part of the effective registration statement that will be filed with the SEC. Interested parties can obtain electronic copies of the final prospectus supplement and accompanying prospectus from the SEC’s website or by contacting Roth Capital Partners, LLC at their Newport Beach address or phone number.
Private Placement Details
The warrants issued in the concurrent private placement fall under Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder. These instruments, along with the shares of common stock underlying them, are not registered under the Securities Act or applicable state securities laws. Therefore, they cannot be offered or sold in the United States unless an exemption from the registration requirements of the Act and relevant state laws applies. For investors, this announcement holds specific importance:
Valuation and Market Impact: The share pricing at $4.35 reflects current market valuations, potentially impacting investor sentiment and stock performance.
Dilution: Issuing new shares and warrants may lead to dilution of existing shareholders' equity, impacting share value.
Strategic Growth: The use of proceeds for general corporate purposes signals ongoing operational needs and strategic expansion, which could affect the company's long-term growth trajectory.
GT Biopharma, Inc. is a clinical-stage biopharmaceutical company with a focus on developing and commercializing immuno-oncology therapeutic products. Their proprietary TriKE® NK cell engager platform aims to enhance the cancer-killing capabilities of a patient's natural killer cells. By leveraging a worldwide license agreement with the University of Minnesota, GT Biopharma continues to advance its TriKE® technology. The company's strategic initiatives include advancing their pipeline of immuno-oncology therapies, with the potential to address various cancer types. Their innovative approach positions them at the forefront of the biopharmaceutical industry, making significant strides in harnessing the immune system for cancer treatment.
GT Biopharma's latest financial maneuver through a $3.2 million registered direct offering and concurrent private placement demonstrates their commitment to securing necessary funds for their ongoing and future projects. As the company continues to advance its TriKE® NK cell engager platform, they remain focused on developing novel cancer therapies that leverage the body's natural defenses.
GT Biopharma, Inc. (NASDAQ: GTBP) is a clinical-stage biopharmaceutical company that specializes in developing and commercializing immuno-oncology therapeutic products. The company's primary focus is on its proprietary TriKE® NK cell engager platform, which is designed to enhance the cancer-killing capabilities of a patient's natural killer (NK) cells.
Immuno-Oncology Focus:
TriKE® Platform: This technology aims to harness and enhance the natural abilities of NK cells within the immune system to target and destroy cancer cells. NK cells are a type of white blood cell that play a crucial role in the body's defense against tumors and virally infected cells.
Proprietary Technology:
TriKE® NK Cell Engager Platform: The TriKE® (Tri-specific Killer Engager) platform is a novel approach that connects NK cells to cancer cells, enhancing the NK cells' ability to recognize and kill malignant cells. By engaging three different targets, this technology improves the precision and effectiveness of NK cell-mediated cancer therapy.
Strategic Collaborations:
University of Minnesota Partnership: GT Biopharma has secured an exclusive worldwide license agreement with the University of Minnesota. This partnership enables the company to further develop and commercialize therapies utilizing the TriKE® technology, leveraging cutting-edge research from a leading academic institution.
Clinical Trials and Development:
As a clinical-stage company, GT Biopharma is actively involved in conducting clinical trials to validate the safety and efficacy of their TriKE®-based therapies. These trials are essential for gaining regulatory approval and bringing new treatments to market.
Therapeutic Goals:
Cancer Treatment: The primary goal of GT Biopharma's therapies is to treat various types of cancer by boosting the body's immune response against cancer cells. By enhancing NK cell activity, the company aims to offer new, effective treatment options for cancer patients.
GT Biopharma recently announced a $3.2 million registered direct offering priced at-the-market under Nasdaq rules, involving the sale of 740,000 shares of common stock at $4.35 per share. In a concurrent private placement, they will issue warrants to purchase up to 740,000 shares of common stock, also priced at $4.35 per share. The funds raised through this offering are intended for general corporate purposes, supporting the company's ongoing operations and development efforts.
GT Biopharma's commitment to advancing immuno-oncology through its innovative TriKE® NK cell engager platform places it at the forefront of cancer therapy development. By leveraging strategic collaborations and focusing on enhancing the natural immune response to cancer, the company aims to bring transformative treatments to patients in need.
Disclaimer: This article is intended for informational purposes only and should not be considered as financial advice. The information contained herein is based on publicly available data and is subject to change. Investors are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.