GT Biopharma Announces Closing of $23.7 Million Public Offering

Rhea-AI Summary

GT Biopharma, Inc. (NASDAQ: GTBP) has successfully closed an underwritten public offering of 4,300,000 Units at $5.50 per Unit, raising approximately $23.6M in gross proceeds. The offering includes a 45-day over-allotment option for underwriters to purchase an additional 645,000 Units. Following the offering, GT Biopharma's cash position is about $30M, extending its runway through 2022, and successfully extinguishing over $25M in debt. This financing supports ongoing clinical trials for its TriKE™ platform targeting cancer therapies, particularly for Acute Myeloid Leukemia and Myelodysplastic syndromes.

Positive

• Raised approximately $23.6M in gross proceeds from the offering.
• Cash position extended to about $30M, ensuring sufficient runway through 2022.
• Successfully extinguished over $25M in debt, improving capital structure.
• Positive human data with no signs of toxicity in GTB-3550 TriKE™ clinical trials.

Negative

• Potential dilution of shares due to the offering.

GT Biopharma, Inc. (NASDAQ: GTBP), a clinical stage biopharmaceutical company focused on the development and commercialization of its disruptive, target-directed Natural Killer (NK) cell engager immunotherapy protein biologic platform technology: TriKE™ for cancer and infectious diseases, today announced the closing of an underwritten public offering of 4,300,000 Units. Each Unit consisted of one share of GT Biopharma’s common stock and one warrant to purchase one share of common stock at a public offering price of $5.50 per share, per Unit. In addition, the Company has granted the underwriters a 45-day over-allotment option to purchase up to an additional 645,000 Units, less underwriting discounts and commissions.

Gross proceeds from the offering are approximately $23.6M, before deducting underwriting discounts and commissions and offering expenses, but excluding any exercise of the underwriters’ over-allotment option. Following the offering, the Company’s cash position is approximately $30M, extending GT Biopharma’s cash runway through 2022. The transaction successfully extinguished over $25M in debt, which converted into equity, without the need to exercise a downward reset and consolidated the Company’s capital structure to 20,637,000 shares issued and outstanding.

Anthony J. Cataldo, GT Biopharma’s Chairman and CEO, commented: “Completing our financing and uplisting to NASDAQ was a major milestone for us and a significant move to increase GT’s corporate reach. We have long been recognized to have a disruptive platform NK technology, TriKE™, as demonstrated with the ongoing results of our FDA-approved expanded GTB-3550 TriKE™ Phase 1/2 clinical trial. This was evidenced by the very positive response to our oral data presentation at the ASH (American Society of Hematology) conference in December. Now, as a repositioned biotech NASDAQ trading company, institutional funds and analysts are no longer restricted from participating with GT Biopharma, Inc. With this infusion of capital set to advance both liquid and solid cancer TriKEs™ in the clinic, and partnership opportunities on the horizon for targeted TriKE™ licensing programs, this is a most auspicious time for the Company. We are very excited to have our corporate structure on par with the quality of human data, which thus far has shown no signs of toxicity or side effects; but has shown clinical benefit in our GTB-3550 TriKE™ Phase 1/2 expansion trial for Acute Myeloid Leukemia (AML) and Myelodysplastic syndromes (MDS). This is the first of our several planned cancer trials later this year.”

Roth Capital Partners and Dawson James Securities, Inc. acted as joint book-running managers for the offering.

About GT Biopharma, Inc.

GT Biopharma, Inc. is a clinical stage biopharmaceutical company focused on the development and commercialization of immunology therapeutic products based on our proprietary Trispecific Killer Engagers (TriKE™) target-directed Natural Killer (NK) cell engager platform. The TriKE™ NK protein biologic platform is designed to harness and amplify the body’s native immune system for hope for patients with cancer and infectious diseases. GT Biopharma has an exclusive worldwide license agreement with the University of Minnesota, where Jeffery S. Miller, M.D., GT Biopharma’s Consulting Chief Medical Officer, developed the TriKE™, to further develop and commercialize therapies using TriKE™ technology. For further information, please visit http://www.gtbiopharma.com.

Forward-Looking Statements

Our forward-looking statements reflect our current views with respect to future events and are based on currently available financial, economic, scientific, and competitive data and information on current business plans. You should not place undue reliance on our forward-looking statements, which are subject to risks and uncertainties relating to, among other things: (i) the sufficiency of our cash position and our ongoing ability to raise additional capital to fund our operations, (ii) our ability to complete our contemplated clinical trials, or to meet the FDA's requirements with respect to safety and efficacy, (iii) our ability to identify patients to enroll in our clinical trials in a timely fashion, (iv) our ability to achieve approval of a marketable product, (v) design, implementation and conduct of clinical trials, (vii) the results of our clinical trials, including the possibility of unfavorable clinical trial results, (vii) the market for, and marketability of, any product that is approved, (viii) the existence or development of treatments that are viewed by medical professionals or patients as superior to our products, (ix) regulatory initiatives, compliance with governmental regulations and the regulatory approval process, and social conditions, and (x) various other matters, many of which are beyond our control. Should one or more of these risks or uncertainties develop, or should underlying assumptions prove to be incorrect, actual results may vary materially and adversely from those anticipated, believed, estimated, or otherwise indicated by our forward-looking statements.

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FAQ

What is the purpose of GT Biopharma's recent public offering?

The public offering aims to raise funds for advancing clinical trials and supports the company's TriKE™ platform for cancer therapies.

How much did GT Biopharma raise in its public offering?

GT Biopharma raised approximately $23.6M in gross proceeds from the offering.

What is the impact of the public offering on GT Biopharma's financial position?

The offering extends GT Biopharma's cash runway to about $30M and helps extinguish over $25M in debt.

What are TriKEs™ and how are they related to GT Biopharma?

TriKEs™ are target-directed Natural Killer (NK) cell engager immunotherapy proteins designed for cancer and infectious diseases, developed by GT Biopharma.

What is the significance of the underwriters' option in GT Biopharma's offering?

The underwriters have a 45-day option to purchase an additional 645,000 Units, potentially increasing the total capital raised.