Bio-Path Holdings Announces Closing of $4.0 Million Private Placement Priced At-the-Market Under Nasdaq Rules

Rhea-AI Summary

Bio-Path Holdings (NASDAQ:BPTH) has closed a $4.0 million private placement priced at-the-market under Nasdaq rules. The offering included the issuance of 4,597,702 shares of common stock (or equivalents), series A warrants for up to 6,407,657 shares, and short-term series B warrants for up to 6,407,657 shares at $0.87 per share. Both warrant types have an exercise price of $1.00 per share.

The company plans to use the net proceeds for working capital and general corporate purposes. H.C. Wainwright & Co. acted as the exclusive placement agent. Additionally, certain outstanding warrants from June 2024 were cancelled upon closing of this placement.

Positive

• Raised $4.0 million in gross proceeds through private placement
• Warrants have potential to bring additional capital if exercised
• Strengthened working capital position

Negative

• Potential dilution for existing shareholders due to new share issuance
• Warrants may lead to further dilution if exercised
• Offering priced at $0.87 per share, which may be below current market price

Insights

Financial Analyst

Bio-Path Holdings has closed a $4.0 million private placement, a significant move for a company with a market cap of just $2.9 million. This capital injection substantially bolsters their financial position, potentially extending their operational runway. The offering structure, including common stock and warrants, is complex and dilutive. The $0.87 per share price and $1.00 warrant exercise price indicate investor caution. The cancellation of previous warrants simplifies their capital structure. While the funding is important for their DNAbilize® technology development, the dilution and warrant overhang may pressure the stock price. The use of proceeds for working capital suggests near-term financial constraints. This financing, while necessary, reflects the challenges faced by small-cap biotech companies in the current market.

Biotech Research Analyst

This financing is critical for Bio-Path's development of their DNAbilize® liposomal delivery and antisense technology platform. The $4 million raised, while dilutive, provides essential capital to advance their targeted nucleic acid cancer drugs. The company's focus on this proprietary technology in oncology is promising but early-stage, typical of small biotechs. The warrant structure, with both long-term (5-year) and short-term (24-month) components, suggests a balance between immediate funding needs and potential future upside for investors. However, the need for stockholder approval for warrant exercises adds uncertainty. The cancellation of previous warrants may indicate a reset in investor expectations. Overall, this funding is a lifeline for continued R&D, but also highlights the precarious position of early-stage biotech companies reliant on periodic capital infusions.

HOUSTON, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Bio-Path Holdings, Inc. (NASDAQ:BPTH) (“Bio-Path” or the “Company”), a biotechnology company leveraging its proprietary DNAbilize® liposomal delivery and antisense technology to develop a portfolio of targeted nucleic acid cancer drugs, today announced that it has closed its previously announced private placement priced at-the-market under Nasdaq rules for the issuance and sale of an aggregate of 4,597,702 shares of its common stock (or common stock equivalents in lieu thereof), series A warrants to purchase up to 6,407,657 shares of common stock and short-term series B warrants to purchase up to 6,407,657 shares of common stock at a purchase price of $0.87 per share of common stock (or per common stock equivalent in lieu thereof) and accompanying warrants in a private placement. The series A warrants and short-term series B warrants have an exercise price of $1.00 per share and will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares issuable upon exercise of the warrants (the “Stockholder Approval Date”). The series A warrants will expire five years from the Stockholder Approval Date and the short-term series B warrants will expire twenty-four months from the Stockholder Approval Date.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering were approximately $4.0 million, before deducting the placement agent’s fees and other offering expenses payable by the Company, and excluding the proceeds, if any, from the exercise of the warrants. The Company currently intends to use the net proceeds from the offering for working capital and general corporate purposes.

The securities described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the securities described above, including the shares of common stock underlying the warrants, may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

In addition, effective on the closing of the private placement certain outstanding series A warrants to purchase up to an aggregate of 1,809,955 shares of the Company’s common stock and series B warrants to purchase up to an aggregate of 1,809,955 shares of the Company’s common stock issued in June 2024 were cancelled.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Bio-Path Holdings, Inc.

Bio-Path is a biotechnology company developing DNAbilize®, a novel technology that has yielded a pipeline of RNAi nanoparticle drugs that can be administered with a simple intravenous infusion. Bio-Path’s lead product candidate, prexigebersen (BP1001, targeting the Grb2 protein), is in a Phase 2 study for blood cancers, and BP1001-A, a drug product modification of prexigebersen, is in a Phase 1/1b study for solid tumors. The Company’s second product, BP1002, which targets the Bcl-2 protein, is being evaluated for the treatment of blood cancers and solid tumors, including lymphoma and acute myeloid leukemia. In addition, an IND application is expected to be filed for BP1003, a novel liposome-incorporated STAT3 antisense oligodeoxynucleotide developed by Bio-Path as a specific inhibitor of STAT3.

For more information, please visit the Company's website at www.biopathholdings.com.

Forward-Looking Statements

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the federal securities laws, including statements related to the intended use of proceeds from the private placement. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Any statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including market and other conditions, Bio-Path’s ability to regain and maintain compliance with Nasdaq’s continued listing requirements, Bio-Path’s ability to raise needed additional capital on a timely basis in order for it to continue its operations, have success in the clinical development of its technologies, the timing of enrollment and release of data in such clinical studies, the accuracy of such data, limited patient populations of early stage clinical studies and the possibility that results from later stage clinical trials with much larger patient populations may not be consistent with earlier stage clinical trials, the maintenance of intellectual property rights, that patents relating to existing or future patent applications will be issued or that any issued patents will provide meaningful protection of our drug candidates, the impact, risks and uncertainties related to global pandemics, including the COVID-19 pandemic, and actions taken by governmental authorities or others in connection therewith, and such other risks which are identified in Bio-Path's most recent Annual Report on Form 10-K, in any subsequent quarterly reports on Form 10-Q and in other reports that Bio-Path files with the Securities and Exchange Commission from time to time. These documents are available on request from Bio-Path or at www.sec.gov. Bio-Path disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:

Investors

Will O’Connor
Stern Investor Relations, Inc.
212-362-1200
will@sternir.com

Doug Morris
Investor Relations
Bio-Path Holdings, Inc.
832-742-1369

FAQ

How much did Bio-Path Holdings (BPTH) raise in its recent private placement?

Bio-Path Holdings (BPTH) raised approximately $4.0 million in gross proceeds from its recent private placement.

What was the price per share for Bio-Path Holdings' (BPTH) private placement?

The private placement was priced at $0.87 per share of common stock (or per common stock equivalent) and accompanying warrants.

How many warrants were issued in Bio-Path Holdings' (BPTH) private placement?

Bio-Path Holdings issued series A warrants to purchase up to 6,407,657 shares and short-term series B warrants to purchase up to 6,407,657 shares.

What is the exercise price of the warrants issued by Bio-Path Holdings (BPTH)?

The series A and short-term series B warrants have an exercise price of $1.00 per share.

How does Bio-Path Holdings (BPTH) plan to use the proceeds from the private placement?

Bio-Path Holdings intends to use the net proceeds from the offering for working capital and general corporate purposes.