Akari Therapeutics Announces $7.6 Million Private Placement Offering Led by Existing Shareholders and Insiders Priced at the Market Under Nasdaq Rules
Akari Therapeutics (Nasdaq: AKTX) has announced a private placement offering expected to raise $7.6 million in gross proceeds, with strong support from existing shareholders and board members. The financing includes the issuance of 6,637,626 unregistered American Depository Shares (ADSs) priced at $0.87 per ADS, along with Series A and B Warrants.
The deal structure includes the conversion of an existing $1 million convertible note by Board Chairman Dr. Huh, with expected cash proceeds of $6.6 million before fees. The warrants will have an exercise price of $0.87 per ADS, with Series A and B having terms of one and five years respectively.
Funds will be allocated towards the company's spliceosome inhibitor payload ADC technology platform, seeking license partners for its TROP-2 ADC program, and monetizing non-core assets. Paulson Investment Company serves as placement agent, with closing expected around March 5, 2025.
Akari Therapeutics (Nasdaq: AKTX) ha annunciato un'offerta di collocamento privato che si prevede raccolga 7,6 milioni di dollari in proventi lordi, con un forte supporto da parte degli azionisti esistenti e dei membri del consiglio. Il finanziamento include l'emissione di 6.637.626 American Depository Shares (ADS) non registrate a un prezzo di 0,87 dollari per ADS, insieme a Warrants di Serie A e B.
La struttura dell'accordo prevede la conversione di un prestito convertibile da 1 milione di dollari da parte del Presidente del Consiglio Dr. Huh, con proventi in contante attesi di 6,6 milioni di dollari prima delle spese. I warrants avranno un prezzo di esercizio di 0,87 dollari per ADS, con le Serie A e B che avranno termini di uno e cinque anni rispettivamente.
I fondi saranno destinati alla piattaforma tecnologica ADC con payload inibitore di spliceosoma dell'azienda, alla ricerca di partner di licenza per il suo programma ADC TROP-2 e alla monetizzazione di beni non core. Paulson Investment Company funge da agente di collocamento, con la chiusura prevista intorno al 5 marzo 2025.
Akari Therapeutics (Nasdaq: AKTX) ha anunciado una oferta de colocación privada que se espera recaude 7.6 millones de dólares en ingresos brutos, con un fuerte apoyo de los accionistas existentes y miembros de la junta. El financiamiento incluye la emisión de 6,637,626 American Depository Shares (ADS) no registradas a un precio de 0.87 dólares por ADS, junto con Warrants de Series A y B.
La estructura del acuerdo incluye la conversión de un bono convertible de 1 millón de dólares por parte del Presidente de la Junta Dr. Huh, con ingresos en efectivo esperados de 6.6 millones de dólares antes de comisiones. Los warrants tendrán un precio de ejercicio de 0.87 dólares por ADS, con las Series A y B teniendo plazos de uno y cinco años respectivamente.
Los fondos se destinarán a la plataforma tecnológica ADC con carga de inhibidor de spliceosoma de la empresa, buscando socios de licencia para su programa ADC TROP-2 y monetizando activos no centrales. Paulson Investment Company actúa como agente de colocación, con el cierre esperado alrededor del 5 de marzo de 2025.
아카리 테라퓨틱스 (Nasdaq: AKTX)는 760만 달러의 총 수익을 올릴 것으로 예상되는 사모 배치 제안을 발표했으며, 기존 주주와 이사회의 강력한 지원을 받고 있습니다. 이 자금 조달에는 6,637,626개의 등록되지 않은 미국 예탁 주식(ADS)가 ADS당 0.87달러에 발행되는 것이 포함되며, A 및 B 시리즈 워런트도 포함됩니다.
거래 구조에는 이사장인 Dr. Huh가 보유한 기존의 100만 달러 규모의 전환사채의 전환이 포함되어 있으며, 수수료를 제외한 예상 현금 수익은 660만 달러입니다. 워런트의 행사 가격은 ADS당 0.87달러이며, A 시리즈와 B 시리즈는 각각 1년 및 5년의 조건을 가집니다.
자금은 회사의 스플라이스좀 억제제 페이로드 ADC 기술 플랫폼에 할당되며, TROP-2 ADC 프로그램을 위한 라이센스 파트너를 찾고 비핵심 자산을 수익화하는 데 사용됩니다. Paulson Investment Company가 배치 에이전트로 활동하며, 마감은 2025년 3월 5일경으로 예상됩니다.
Akari Therapeutics (Nasdaq: AKTX) a annoncé une offre de placement privé qui devrait permettre de lever 7,6 millions de dollars de produits bruts, avec un fort soutien des actionnaires existants et des membres du conseil. Le financement comprend l'émission de 6.637.626 American Depository Shares (ADS) non enregistrées au prix de 0,87 dollar par ADS, ainsi que des Warrants de série A et B.
La structure de l'accord comprend la conversion d'une note convertible de 1 million de dollars par le Président du Conseil Dr. Huh, avec des produits en espèces attendus de 6,6 millions de dollars avant frais. Les warrants auront un prix d'exercice de 0,87 dollar par ADS, les séries A et B ayant des durées d'un et de cinq ans respectivement.
Les fonds seront alloués à la plateforme technologique ADC avec charge d'inhibiteur de spliceosome de l'entreprise, cherchant des partenaires de licence pour son programme ADC TROP-2 et monétisant des actifs non stratégiques. La Paulson Investment Company agit en tant qu'agent de placement, avec une clôture prévue autour du 5 mars 2025.
Akari Therapeutics (Nasdaq: AKTX) hat eine Privatplatzierung angekündigt, die voraussichtlich 7,6 Millionen Dollar an Bruttoerlösen einbringen wird, mit starker Unterstützung von bestehenden Aktionären und Vorstandsmitgliedern. Die Finanzierung umfasst die Emission von 6.637.626 nicht registrierten American Depository Shares (ADS), die zu einem Preis von 0,87 Dollar pro ADS angeboten werden, sowie von Warrants der Serien A und B.
Die Struktur des Deals umfasst die Umwandlung einer bestehenden 1 Million Dollar umfassenden wandelbaren Anleihe durch den Vorstandsvorsitzenden Dr. Huh, mit erwarteten Bareinnahmen von 6,6 Millionen Dollar vor Gebühren. Die Warrants haben einen Ausübungspreis von 0,87 Dollar pro ADS, wobei die Serien A und B Laufzeiten von einem bzw. fünf Jahren haben.
Die Mittel werden für die ADC-Technologieplattform mit Spliceosom-Inhibitor-Payload des Unternehmens verwendet, um Lizenzpartner für sein TROP-2 ADC-Programm zu suchen und nicht zum Kerngeschäft gehörende Vermögenswerte zu monetarisieren. Die Paulson Investment Company fungiert als Platzierungsagent, und der Abschluss wird um den 5. März 2025 erwartet.
- Strong insider participation with Board members and existing investors supporting the offering
- Chairman converts $1M convertible note, showing confidence in company
- Financing priced at market without discount
- Clear strategic use of proceeds for ADC technology development
- Dilutive financing through issuance of new shares
- Additional potential dilution from warrant exercise
- Relatively small raise may require additional future funding
Insights
Akari Therapeutics' $7.6 million private placement represents a significant capital injection for this small biotech company with a market cap of just
Notably, the company's Chairman converted a
This financing provides important runway for Akari's ADC technology platform development and partnership initiatives for its TROP-2 program. For a company of this size, securing capital without a discount to market price is relatively positive, though the warrant structure adds potential future dilution.
The transaction represents approximately
BOSTON and LONDON, March 03, 2025 (GLOBE NEWSWIRE) -- Akari Therapeutics Plc (Nasdaq: AKTX), a biotechnology company developing next-generation precision bi-functional antibody drug conjugates (ADCs) for the treatment of cancer, today announced the successful pricing of a private placement financing round. This transaction is expected to raise an aggregate of approximately
“We were very pleased that the private placement was supported by existing investors and our Board of Directors, all of whom participated in this financing,” said Samir R. Patel, MD, President and CEO of Akari Therapeutics. Dr. Patel added that, “I am very encouraged by this show of confidence and continued significant interest from our long-term investors.”
The Company entered into definitive purchase agreements with the investors for the issuance and sale of 6,637,626 unregistered American Depository Shares (ADSs), or prefunded warrants in lieu thereof, and Series A Warrants and Series B Warrants (“the Offering”). The ADSs were priced at
The gross cash proceeds from the Offering are expected to be approximately
The Series A and Series B Warrants will have an exercise price of
Paulson Investment Company LLC is acting as placement agent for the financing.
The private placement is expected to close on or about March 5, 2025, subject to the satisfaction of customary closing obligations.
The ADSs and warrants described above are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”) and Regulation D promulgated thereunder and have not been registered under the Act or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission 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 of the securities described herein. There shall not be any offer, solicitation of an offer to buy, or sale of securities in any state or jurisdiction in which such an offering, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Akari Therapeutics
Akari Therapeutics is a biotechnology company developing next-generation precision bi-functional antibody drug conjugates (ADC) for the treatment of cancer. Utilizing its innovative ADC discovery platform, the Company has the ability to generate novel bi-functional ADC candidates and optimize them based on the desired application to target a range of cancers to fuel a growing pipeline. Akari’s lead candidate, AKTX-101, targets the TROP2 receptor on cancer cells and with a proprietary linker delivers its novel PH1 payload directly into the tumor. Unlike current ADCs that use tubulin inhibitors and DNA damaging agents as their toxin classes, PH1 is a novel bi-functional payload that is designed to disrupt RNA splicing within cancer cells, inducing tumor-specific cell death while generating immunostimulatory effects and minimizing off-target toxicity. Given this mechanism, AKTX-101 has the potential to overcome many of the shortcomings of current ADCs, off-target toxicity and resistance. In preclinical studies, AKTX-101 has shown to have superior activity, prolonged survival, less resistance and better tolerability and safety. Additionally, AKTX-101 has the potential to be synergistic with checkpoint inhibitors and has demonstrated prolonged survival in preclinical models. The Company is generating validating data on its novel payloads to advance its pipeline.
For more information about the Company, please visit www.akaritx.com and connect on X and LinkedIn.
Cautionary Note Regarding Forward-Looking Statements
This press release includes express or implied forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), about the Company that involve risks and uncertainties relating to future events and the future performance of the Company. Actual events or results may differ materially from these forward-looking statements. Words such as “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “future,” “opportunity” “will likely result,” “target,” variations of such words, and similar expressions or negatives of these words are intended to identify such forward-looking statements, although not all forward-looking statements contain these identifying words. Examples of such forward-looking statements include, but are not limited to, express or implied statements regarding the closing of the Offering and the expected use of proceeds related thereto: the business combination and related matters, including, but not limited to, post-closing operations and the outlook for the Company’s business; the Company’s targets, plans, objectives or goals for future operations, including those related to its product candidates; financial projections; future economic performance,; and the assumptions underlying or relating to such statements. These statements are based on the Company’s current plans, estimates and projections. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. A number of important factors, including those described in this communication, could cause actual results to differ materially from those contemplated in any forward-looking statements. Factors that may affect future results and may cause these forward-looking statements to be inaccurate include, without limitation: the risk that Akari and Peak Bio may not realize the anticipated benefits of the merger with Peak Bio (the “Merger”) in the time frame expected, or at all; the ability to retain and hire key personnel; potential adverse reactions or changes to business relationships resulting from the Merger; the potential impact of unforeseen liabilities, future capital expenditures, revenues, costs, expenses, earnings, synergies, economic performance, indebtedness, financial condition and losses on the future prospects, business and management strategies for the management, expansion and growth of the combined business; uncertainties as to the long-term value of Akari’s American Depositary Shares (and the ordinary shares represented thereby), including the dilution caused by Akari’s issuance of additional American Depositary Shares (and the ordinary shares represented thereby) in connection with the Merger; risks related to global as well as local political and economic conditions, including interest rate and currency exchange rate fluctuations; potential delays or failures related to research and/or development of the Company’s programs or product candidates; risks related to any loss of the Company’s patents or other intellectual property rights; any interruptions of the supply chain for raw materials or manufacturing for the Company’s product candidates, including as a result of potential tariffs;, the nature, timing, cost and possible success and therapeutic applications of product candidates being developed by the Company and/or its collaborators or licensees; the extent to which the results from the research and development programs conducted by the Company, and/or its collaborators or licensees may be replicated in other studies and/or lead to advancement of product candidates to clinical trials, therapeutic applications, or regulatory approval; uncertainty of the utilization, market acceptance, and commercial success of the Company’s product candidates; unexpected breaches or terminations with respect to the Company’s material contracts or arrangements; risks related to competition for the Company’s product candidates; the Company’s ability to successfully develop or commercialize its product candidates; potential exposure to legal proceedings and investigations; risks related to changes in governmental laws and related interpretation thereof, including on reimbursement, intellectual property protection and regulatory controls on testing, approval, manufacturing, development or commercialization of any of the Company’s product candidates; and the Company’s ability to maintain listing of its ADSs on the Nasdaq Capital Market. While the foregoing list of factors presented here is considered representative, no list should be considered to be a complete statement of all potential risks and uncertainties. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
Investor Relations Contact
JTC Team, LLC
Jenene Thomas
908-824-0775
AKTX@jtcir.com
FAQ
What is the price per ADS in AKTX's March 2025 private placement?
How many ADSs is AKTX offering in the March 2025 private placement?
What are the terms of AKTX's Series A and B warrants in the March 2025 offering?
How will AKTX use the proceeds from the March 2025 private placement?
What is the total expected gross proceeds from AKTX's March 2025 private placement?
