On September 1, 2020 Kintara Therapeutics, Inc. ("Kintara" or the "Company") (Nasdaq: KTRA) reported the final closing of its previously announced private placement of Series C Convertible Preferred Stock (the "Preferred Stock") to accredited investors (Press release, Kintara Therapeutics, SEP 1, 2020, View Source [SID1234564222]). Including the previously announced closings, Kintara received aggregate gross proceeds of approximately $25 million before deducting placement agent fees and other offering expenses payable by the Company.
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The capital raised from existing and new investors is expected to facilitate Kintara’s strategic initiative to become a recognized leader in developing therapies for rare and difficult to treat oncology indications. The Company intends to use the net proceeds from the offering primarily to fund the previously announced registration study for VAL-083 in newly diagnosed and recurrent glioblastoma multiforme (GBM) and the 15-patient REM-001 confirmatory lead-in study that is designed to seamlessly transition into a Phase 3 pivotal study for cutaneous metastatic breast cancer (CMBC) as well as for working capital. As previously disclosed, the VAL-083 GBM registration study will be executed through the Company’s partnership with Global Coalition for Adaptive Research (GCAR) through the Glioblastoma Adaptive Global Innovative Learning Environment (GBM AGILE) Study, the world’s first global adaptive clinical trial platform for GBM with regulatory support as a registrational study.
"This is a transformational event for the Company as we believe it validates the combined portfolio of assets from the recently completed acquisition of Adgero," commented Saiid Zarrabian, President and Chief Executive Officer of Kintara. "Furthermore, and perhaps most importantly, we believe this financing provides sufficient capital to achieve meaningful value generating milestones for multiple clinical stage programs over the next 12-24 months. We look forward to enrolling the first patient into the VAL-083 arm of the GBM AGILE study in the fourth quarter of 2020 and plan to initiate the 15 patient REM-001 confirmatory study in the second quarter of 2021, with planned data results from this study as early as the fourth quarter of 2021."
The private placement offering consisted of the issuance of an aggregate of 25,028 shares of the Company’s Series C Convertible Preferred Stock (the "Preferred Stock") at a purchase price of $1,000 per share priced at-the-market under the rules of the Nasdaq Stock Market. The Preferred Stock was issued in three separate series, 19,587 shares of Series C-1 Preferred Stock, which are convertible into 16,885,345 shares of the Company’s common stock at a conversion price of $1.16 per share, 2,185 shares of Series C-2 Preferred Stock, which are convertible into 1,799,835 shares of the Company’s common stock at a conversion price of $1.214 per share and 3,256 shares of Series C-3 Preferred Stock, which are convertible into 2,831,304 shares of the Company’s common stock at a conversion price of $1.15 per share. The Preferred Stock also accrues dividends as previously disclosed.
"The strong investor response to this private placement is confirmation of the attractiveness of Kintara’s unique corporate profile and diversified late-stage oncology product pipeline targeting rare, unmet medical needs," commented Adam Stern, Chief Executive Officer of SternAegis Ventures. "With the addition of new capital, the Company is now in a strong position to expedite the advancement of two potential therapeutic candidates into late-stage clinical trials."
SternAegis Ventures acted as the exclusive placement agent for the private placement.
The shares of Preferred Stock described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act"), and, along with the common shares issuable upon their conversion or payable as dividends pursuant to the Preferred Stock, have not been registered under the Act, and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.