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Altamira Therapeutics Announces Closing of up to $12.0 Million Public Offering

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Altamira Therapeutics announced the closing of its public offering, raising approximately $4.0 million upfront with potential additional gross proceeds of $8.0 million upon full exercise of milestone-linked warrants. The offering included 5,555,556 common shares (or pre-funded warrants) and accompanying Series A-1 and A-2 common warrants at a combined price of $0.72 per share. The Series A-1 warrants are exercisable immediately and expire on the earlier of 18 months from issuance or 60 days post-positive biodistribution data announcement. Series A-2 warrants also are immediately exercisable and expire on the earlier of five years from issuance or six months post-agreement announcement covering specific territories. H.C. Wainwright & Co. acted as the exclusive placement agent. Net proceeds will be used for working capital and general corporate purposes. Additionally, existing warrants for 555,556 common shares were amended to reduce the exercise price to $0.72 per share.

Altamira Therapeutics ha annunciato la chiusura della sua offerta pubblica, raccogliendo circa $4,0 milioni iniziali con potenziali ricavi aggiuntivi lordi di $8,0 milioni a seguito dell'esercizio completo delle warrant legate ai traguardi. L'offerta includeva 5.555.556 azioni ordinarie (o warrant prefinanziati) e rispettivi warrant ordinari di Serie A-1 e A-2 a un prezzo combinato di $0,72 per azione. I warrant di Serie A-1 sono esercitabili immediatamente e scadono al termine di 18 mesi dall'emissione o 60 giorni dopo l'annuncio di dati positivi sulla biodistribuzione. Anche i warrant di Serie A-2 sono immediatamente esercitabili e scadono al termine di cinque anni dall'emissione o sei mesi dopo l'annuncio dell'accordo per specifici territori. H.C. Wainwright & Co. ha agito come unico agente di collocamento. I proventi netti saranno utilizzati per il capitale circolante e per fini aziendali generali. Inoltre, i warrant esistenti per 555.556 azioni ordinarie sono stati modificati per ridurre il prezzo di esercizio a $0,72 per azione.

Altamira Therapeutics anunció el cierre de su oferta pública, recaudando aproximadamente $4.0 millones inicialmente con posibles ingresos brutos adicionales de $8.0 millones tras el ejercicio completo de las opciones vinculadas a hitos. La oferta incluía 5,555,556 acciones comunes (o warrants prefinanciados) y warrants comunes de la Serie A-1 y A-2 a un precio combinado de $0.72 por acción. Los warrants de la Serie A-1 son ejercitables de inmediato y caducan al cabo de 18 meses desde la emisión o 60 días después del anuncio de datos de biodistribución positivos. Los warrants de la Serie A-2 también son ejercitables de inmediato y caducan al cabo de cinco años desde la emisión o seis meses tras el anuncio del acuerdo que cubre territorios específicos. H.C. Wainwright & Co. actuó como el agente exclusivo de colocación. Los ingresos netos se utilizarán para capital de trabajo y fines corporativos generales. Además, los warrants existentes para 555,556 acciones comunes fueron modificados para reducir el precio de ejercicio a $0.72 por acción.

알타미라 제약은 공모를 종료하고 약 $4.0 백만을 선불로 조달했으며, 목표 달성 연계된 워런트를 전량 행사할 경우 추가 총 수익 $8.0 백만이 발생할 수 있다고 발표했습니다. 이번 공모에는 5,555,556 주식(또는 선불 워런트)과 함께 A-1 및 A-2 시리즈의 일반 워런트가 포함되어 있으며 주당 총 가격은 $0.72입니다. A-1 시리즈의 워런트는 즉시 행사 가능하며, 발행일부터 18개월 이내 또는 긍정적인 바이오 분포 데이터 발표 후 60일 중 먼저 오는 날짜에 만료됩니다. A-2 시리즈의 워런트도 즉시 행사 가능하며, 발행일부터 5년 이내 또는 특정 지역에 대한 합의 발표 후 6개월 중 먼저 오는 날짜에 만료됩니다. H.C. 웨인라이트 & Co.가 유일한 배치 에이전트로 활동했습니다. 순수익은 운영 자금 및 일반 기업 목적에 사용됩니다. 또한, 기존 555,556 주식에 대한 워런트가 수정되어 행사 가격이 $0.72로 낮춰졌습니다.

Altamira Therapeutics a annoncé la clôture de son offre publique, levant environ $4,0 millions en avance avec des recettes brutes potentielles supplémentaires de $8,0 millions lors de l'exercice complet des warrants liés aux jalons. L'offre comprenait 5.555.556 actions ordinaires (ou warrants préfinancés) et des warrants ordinaires de série A-1 et A-2 au prix combiné de $0,72 par action. Les warrants de série A-1 sont exerçables immédiatement et expirent au plus tôt 18 mois après leur émission ou 60 jours après l'annonce de données de biodistribution positives. Les warrants de série A-2 sont également immédiatement exerçables et expirent au plus tôt cinq ans après leur émission ou six mois après l'annonce d'un accord concernant des territoires spécifiques. H.C. Wainwright & Co. a agi en tant qu'agent de placement exclusif. Les produits nets seront utilisés pour le fonds de roulement et des fins corporatives générales. De plus, les warrants existants pour 555.556 actions ordinaires ont été modifiés pour réduire le prix d'exercice à $0,72 par action.

Altamira Therapeutics hat den Abschluss seiner öffentlichen Angebot bekannt gegeben und dabei etwa $4,0 Millionen im Voraus gesammelt, mit möglichen zusätzlichen Bruttoeinnahmen von $8,0 Millionen bei vollständiger Ausübung der auf Meilensteinen basierenden Optionen. Das Angebot umfasste 5.555.556 Stammaktien (oder vorfinanzierte Optionen) sowie die zugehörigen Series A-1 und A-2 Optionen zu einem Gesamtpreis von $0,72 pro Aktie. Die Series A-1 Optionen sind sofort ausübbar und verfallen am frühesten nach 18 Monaten ab Emission oder 60 Tage nach Bekanntgabe positiver Biodistributionsdaten. Die Series A-2 Optionen sind ebenfalls sofort ausübbar und verfallen am frühesten nach fünf Jahren ab Emission oder sechs Monate nach Bekanntgabe der Vereinbarung für bestimmte Gebiete. H.C. Wainwright & Co. fungierte als exklusiver Platzierungsagent. Die Nettoerlöse werden für Betriebskapital und allgemeine Unternehmenszwecke verwendet. Zudem wurden bestehende Optionen für 555.556 Stammaktien geändert, um den Ausübungspreis auf $0,72 pro Aktie zu senken.

Positive
  • Raised $4.0 million upfront with potential additional $8.0 million.
  • Net proceeds to be used for working capital and general corporate purposes.
  • Amended existing warrants to a more favorable exercise price, potentially increasing future liquidity.
Negative
  • Potential dilution for existing shareholders due to the issuance of new shares and warrants.
  • No assurance that Series A-1 and A-2 warrants will be exercised, potentially limiting additional funds.

Insights

Altamira Therapeutics' $12 million public offering is a double-edged sword for investors. While it provides much-needed capital, it comes at the cost of significant dilution. The $4 million upfront cash infusion is modest, with the remaining $8 million contingent on warrant exercises. The low offering price of $0.72 per share suggests weak market confidence. The milestone-linked warrants tie future funding to company progress, which could incentivize management but also creates uncertainty. The amendment of existing warrants at a 92% discount ($0.72 vs $9.00) is particularly concerning, indicating a drastic devaluation. This financing strategy may keep Altamira afloat, but it significantly impacts existing shareholders' value.

Altamira's focus on RNA delivery technology for targets beyond the liver is promising, but this offering reveals financial strain. The milestone-linked warrants tied to AM-401 and AM-411 nanoparticles suggest these are key programs. Positive biodistribution data could trigger $4 million in additional funding, while partnering deals could unlock another $4 million. This structure indicates the company is betting on near-term clinical progress to sustain operations. However, the need for such dilutive financing implies a lack of confidence from traditional biotech investors, raising questions about the technology's competitiveness in the RNA therapeutics landscape.

This offering structure reflects a high-risk, high-reward scenario for Altamira. The immediate $4 million provides a short runway, while the additional $8 million acts as a carrot for both investors and management. The 18-month and 5-year warrant expirations create a sense of urgency for clinical and business development milestones. However, the 92% discount on amended warrants suggests desperation. With a Nasdaq-listed biotech resorting to such terms, it's clear that market sentiment towards small-cap biotechs remains challenging. This deal structure could become a template for other cash-strapped biotechs, potentially signaling a shift in how early-stage life science companies access capital in the current market.

Hamilton, Bermuda, Sept. 19, 2024 (GLOBE NEWSWIRE) --

  • $4 million upfront with up to an additional $8 million of aggregate gross proceeds upon the exercise in full for cash of milestone-linked warrants

Altamira Therapeutics Ltd. (“Altamira” or the “Company”) (Nasdaq:CYTO), a company dedicated to developing and commercializing RNA delivery technology for targets beyond the liver, today announced the closing of its previously announced public offering of an aggregate of 5,555,556 common shares (or pre-funded warrants in lieu thereof) accompanied by Series A-1 common warrants to purchase up to 5,555,556 common shares and Series A-2 common warrants to purchase up to 5,555,556 common shares, at a combined public offering price of $0.72 per share (or per pre-funded warrant in lieu thereof) and accompanying Series A-1 common warrant and Series A-2 common warrant. The Series A-1 common warrants have an exercise price of $0.72 per share, are immediately exercisable upon issuance and expire on the earlier of the eighteen-month anniversary of the initial issuance date or 60 days following the date the Company publicly announces positive biodistribution data for AM-401 or AM-411 nanoparticles. The Series A-2 common warrants have an exercise price of $0.72 per share, are immediately exercisable upon issuance and expire on the earlier of the five-year anniversary of the initial issuance date or six months following the date the Company publicly announces the entry into one or more agreements relating to the further development and commercialization for AM-401 or AM-411, provided at least one such agreement covers a territory that includes all or a part of the European Union or the United States. 

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

The aggregate gross proceeds to the Company from this offering were approximately $4.0 million, before deducting the placement agent's fees and other offering expenses payable by the Company. The potential additional gross proceeds to the Company from the Series A-1 common warrants and Series A-2 common warrants, if fully exercised on a cash basis, will be approximately $8.0 million. No assurance can be given that any of the Series A-1 common warrants or Series A-2 common warrants will be exercised. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The securities described above were offered pursuant to a registration statement on Form F-1 (File No. 333-281724), as amended, originally filed on August 22, 2024 with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on September 17, 2024. The offering was made only by means of a prospectus which forms a part of the effective registration statement relating to the offering. Electronic copies of the final prospectus may be obtained on the SEC's website at http://www.sec.gov and may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

The Company also agreed to amend certain existing warrants to purchase up to an aggregate of 555,556 common shares that were previously issued in July 2023 at an exercise price of $9.00 per common share and an expiration date of July 10, 2028. Effective upon the closing of the offering, the amended warrants have a reduced exercise price of $0.72 per common share and expire five years following the closing of the offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an 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 Altamira Therapeutics

Altamira Therapeutics (Nasdaq: CYTO) is developing and supplying peptide-based nanoparticle technologies for efficient RNA delivery to extrahepatic tissues (OligoPhore™ / SemaPhore™ platforms). The Company currently has two flagship siRNA programs using its proprietary delivery technology: AM-401 for KRAS driven cancer and AM-411 for rheumatoid arthritis, both in preclinical development beyond in vivo proof of concept. The versatile delivery platform is also suited for mRNA and other RNA modalities and made available to pharma or biotech companies through out-licensing. In addition, Altamira holds a 49% stake (with additional economic rights) in Altamira Medica AG, which holds its commercial-stage legacy asset Bentrio®, an OTC nasal spray for allergic rhinitis. Further, the Company is in the process of partnering / divesting its inner ear legacy assets. Founded in 2003, Altamira is headquartered in Hamilton, Bermuda, with its main operations in Basel, Switzerland. For more information, visit: https://altamiratherapeutics.com/   

Forward-Looking Statements

This press release may contain statements that constitute "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. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Altamira’s strategies or expectations and statements regarding the anticipated use of proceeds from the offering, the ability of the Company to achieve certain milestone events, and the exercise of the Series A-1 common warrants and Series A-2 common warrants upon the achievement of such milestone events or otherwise prior to their expiration. In some cases, you can identify these statements by forward-looking words such as "may", "might", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "projects", "potential", "outlook" or "continue", or the negative of these terms or other comparable terminology. Forward-looking statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. These risks and uncertainties include, but are not limited to, market and other conditions, the clinical utility of Altamira’s product candidates, the timing or likelihood of regulatory filings and approvals, Altamira’s intellectual property position and Altamira’s financial position. These risks and uncertainties also include, but are not limited to, those described under the caption "Risk Factors" in Altamira’s Annual Report on Form 20-F for the year ended December 31, 2023, and in Altamira’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Altamira or to persons acting on behalf of Altamira are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Altamira does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

CONTACT:

Hear@altamiratherapeutics.com


FAQ

What is the total potential gross proceeds from Altamira Therapeutics' public offering?

The total potential gross proceeds from the public offering are up to $12.0 million, including $4.0 million upfront and an additional $8.0 million upon full exercise of milestone-linked warrants.

What is the exercise price for Altamira Therapeutics' Series A-1 and A-2 common warrants?

The exercise price for both Series A-1 and A-2 common warrants is $0.72 per share.

What will Altamira Therapeutics use the net proceeds from the offering for?

Altamira Therapeutics intends to use the net proceeds for working capital and general corporate purposes.

When do the Series A-1 and A-2 common warrants expire?

The Series A-1 common warrants expire on the earlier of 18 months from issuance or 60 days after positive biodistribution data announcement. The Series A-2 common warrants expire on the earlier of five years from issuance or six months after the company announces an agreement covering certain territories.

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