Defence Closes Second Tranche of Fully Subscribed Financing Totaling $4.2 Million

Rhea-AI Summary

Defence Therapeutics (OTCQB: DTCFF) has completed the second tranche of its non-brokered private placement, raising $3.915 million through a fully subscribed financing totaling $4.2 million. The company offered units at $0.60 per unit, with each unit comprising one common share and one warrant exercisable at $0.75 for 24 months.

The company paid $217,680 in finder's fees and issued 372,000 finder's warrants exercisable at $0.75 per share. PowerOne Capital Markets acted as a finder for part of the offering. Additionally, Defence granted 250,000 stock options to board members at $1.02 per share for ten years and 100,000 options to a consultant for three years.

The proceeds will be used to advance preclinical and clinical programs and for general working capital. All securities are subject to a four-month statutory hold period.

Positive

• Successfully raised $3.915 million through private placement
• Warrants provide potential additional capital at $0.75 per share
• Funds secured for advancement of clinical and preclinical programs

Negative

• Significant dilution to existing shareholders through new share issuance
• Substantial cash finder's fees of $217,680 plus 372,000 warrants
• Additional dilution from 350,000 new stock options granted

Montreal, Quebec--(Newsfile Corp. - January 31, 2025) - Defence Therapeutics Inc. (CSE: DTC) (OTCQB: DTCFF) (FSE: DTC) ("Defence" or the "Company"), a Canadian biopharmaceutical company developing radiopharmaceuticals and ADC products using its proprietary platform and drug delivery technologies in addition to novel immune-oncology vaccines, is pleased to announce the closing of the 2^nd tranche of its previously announced non-brokered private placement (the "Offering") of units of the Company (the "Units") at a price of $0.60 per Unit for aggregate gross proceeds of $3,915,000 (the "Closing").

Each Unit consists of one common share in the capital of the Company (each, a "Share") and one common share purchase warrant (each whole, a "Warrant"). Each Warrant is exercisable to acquire one additional Share at an exercise price of $0.75 per Share for a period of 24 months from the date of the Closing (the "Warrant Expiry Date").

In connection with the Closing, the Company paid a cash finder's fees consisting of: (i) a cash fee equal to $217,680 and (ii) issued a total of 372,000 finder's warrants (the "Finder's Warrants") to certain qualified arm's length finder. Each Finder's Warrant is exercisable into one Share at an exercise price of $0.75 per Share on or before the Warrant Expiry Date. PowerOne Capital Markets Limited acted as a finder in connection with a portion of the Offering.

The Company intends to use the net proceeds of the Offering to advance its preclinical and clinical programs and for general working capital. All securities issued in connection with the Offering are subject to a statutory hold period of four months plus a day from their date of issue in accordance with applicable securities legislation.

The Company has granted 250,000 incentive stock options to two board members (the "Directors' Options") and 100,000 incentive stock option to a consultant (the "Consultant's Options"), in accordance with the terms and conditions of Defence's Omnibus Incentive Plan. The stock options granted are vested immediately and exercisable at a price of $1.02 per common share of the Company, of which the Director's Options are for a period of ten years from the grant date and the Consultant's Options are for a period of three years.

About Defence:

Defence Therapeutics is a publicly-traded clinical-stage biotechnology company developing and engineering the next generation of radio-immuno-conjugate and ADC products using its proprietary platform in addition to novel immune-oncology vaccines. The core of Defence Therapeutics platform is the ACCUM^® technology, which enables precision delivery of radio-immuno-conjugates or ADCs in their intact form to target cells, and vaccine antigens. As a result, increased efficacy and potency can be reached against catastrophic illness such as cancer and infectious diseases.

For further information:
Sebastien Plouffe, President, CEO and Director
P: (514) 947-2272
Splouffe@defencetherapeutics.com
www.defencetherapeutics.com

Cautionary Statement Regarding "Forward-Looking" Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-Looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, market prices, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-Looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither the CSE nor its market regulator, as that term is defined in the policies of the CSE, accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239258

FAQ

How much did Defence Therapeutics (DTCFF) raise in its second tranche financing?

Defence Therapeutics raised $3.915 million in the second tranche of its private placement, completing a total financing of $4.2 million.

What is the exercise price and expiry of DTCFF's new warrants?

The warrants are exercisable at $0.75 per share for a period of 24 months from the closing date.

How will Defence Therapeutics use the proceeds from the financing?

The company will use the net proceeds to advance its preclinical and clinical programs and for general working capital purposes.

What stock options did DTCFF grant to board members and consultants?

Defence granted 250,000 stock options to board members exercisable at $1.02 for ten years, and 100,000 options to a consultant exercisable at $1.02 for three years.

What finder's fees did Defence Therapeutics pay for the private placement?

The company paid $217,680 in cash finder's fees and issued 372,000 finder's warrants exercisable at $0.75 per share.