Kairos Pharma Closing of $6.2 Million Initial Public Offering

Rhea-AI Summary

Kairos Pharma (NYSE American: KAPA) has successfully closed its initial public offering, raising $6.2 million by selling 1,550,000 shares at $4.00 each. Trading began on September 16, 2024. The company plans to use the funds to advance its cancer therapeutics pipeline, including a Phase 1 trial for lung cancer and a Phase 2 trial for prostate cancer with its lead candidate ENV 105. Additionally, proceeds will support preclinical development of KROS 101, a small molecule agonist for GITR ligand. Underwriters have a 45-day option to purchase up to 232,500 additional shares. Boustead Securities led the offering, with EF Hutton and Sutter Securities as co-managers.

Positive

• Successful IPO raising $6.2 million in gross proceeds
• Listing on NYSE American under ticker KAPA
• Funds allocated to advance Phase 1 and Phase 2 clinical trials
• Development of preclinical candidate KROS 101 for cancer immunotherapy
• 45-day option for underwriters to purchase additional shares, potentially increasing capital raised

Negative

• Potential dilution of existing shareholders due to new share issuance
• Relatively small IPO size may limit available funds for extensive clinical development
• Early-stage company with products still in clinical trials, indicating high risk

Insights

Financial Analyst

Kairos Pharma's $6.2 million IPO marks a significant milestone, but the relatively small raise raises questions about the company's financial runway. At $4 per share, the offering price suggests cautious investor sentiment. The focus on reversing cancer drug resistance is promising, yet the funds may constrain R&D efforts. Key considerations:

• The proceeds will fund critical Phase 1 and 2 trials, but may not cover extensive development costs.
• The 45-day option for additional shares could provide extra capital if exercised.
• Investor appetite for biotech IPOs in the current market will be tested with this offering.

While the IPO provides essential capital, Kairos may need to secure additional funding sooner rather than later to fully capitalize on its potential.

Oncology Research Analyst

Kairos Pharma's focus on reversing cancer drug resistance and immune suppression addresses a critical need in oncology. Their lead candidate, ENV 105, targeting lung and prostate cancers, could potentially enhance the efficacy of existing treatments. The preclinical KROS 101, a GITR ligand agonist, also shows promise in boosting T cell function against cancer.

Key points:

• Targeting drug resistance could significantly improve patient outcomes if successful.
• The dual approach of addressing both drug resistance and immune suppression is innovative.
• However, the early stage of development (Phase 1 and 2) implies a long road ahead with inherent risks.

While the science is promising, investors should be aware of the typically long and uncertain path to market for novel cancer therapeutics.

Market Research Analyst

Kairos Pharma's IPO reflects the ongoing interest in innovative cancer therapies, despite a challenging market for biotech offerings. The 3.87% uptick in share price on the first day of trading (from $4.00 to $4.15) suggests cautious optimism. Market implications:

• The modest IPO size may limit initial liquidity and institutional investor participation.
• Kairos enters a competitive field, with numerous companies targeting cancer resistance mechanisms.
• Success in clinical trials could lead to significant upside, given the large market for cancer therapeutics.

Investors should monitor clinical trial results closely, as positive data could drive substantial value creation, while setbacks could significantly impact this thinly capitalized company.

LOS ANGELES, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Kairos Pharma, Ltd. (“Kairos Pharma” or the “Company”) (NYSE American: KAPA), a clinical stage biopharmaceutical company developing cancer therapeutics designed to reverse cancer drug resistance and immune suppression, announces that it has closed its initial public offering of 1,550,000 shares of common stock at an offering price of $4.00 per share. The gross proceeds to the Company from the offering were $6,200,000, before deducting underwriting discounts and commissions and other offering expenses. The Company’s common stock began trading on the NYSE American LLC on September 16, 2024 under the symbol “KAPA.”

The Company intends to use the net proceeds from the offering to fund its Phase 1 trial in lung cancer and Phase 2 trial in prostate cancer for its lead product candidate ENV 105, designed to reverse resistance to cancer drugs. The proceeds will also advance preclinical candidates, including KROS 101, a small molecule agonist for the GITR ligand, designed to promote T cell growth and cytotoxic function against cancer.

The Company has granted to the underwriters a 45-day option to purchase up to an additional 232,500 shares of common stock at the public offering price of $4.00 per share, less underwriting discounts and commissions.

Boustead Securities, LLC acted as lead managing underwriter for the offering, and EF Hutton LLC and Sutter Securities, Inc. acted as co-managing underwriters for the offering.

Dorsey & Whitney LLP served as counsel to the Company and Olshan Frome Wolosky LLP served as counsel to the underwriters.

A registration statement on Form S-1 (File No. 333-274805) relating to the offering was declared effective by the Securities and Exchange Commission (the "SEC") on September 16, 2024. The offering is being made only by means of a prospectus. A preliminary prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained, when available, by emailing offerings@boustead1828.com or by calling 1-949-502-4408 or by standard mail to Boustead Securities, LLC, Attention: Equity Capital Markets, 6 Venture, Suite 395, Irvine, California 92618.

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

About Kairos Pharma
Based in Los Angeles, California, Kairos Pharma, Ltd. is a clinical-stage biopharmaceutical company focused on developing a diversified pipeline of cutting-edge oncology therapeutics born from structural biology to reverse cancer drug resistance and the inhibitory effects of cancer on the immune system. The Company is advancing its portfolio of innovative drug candidates designed to reverse resistance and immune suppression from cancer.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” as defined in the federal securities laws. You can identify forward-looking statements as those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. The reader is cautioned not to rely on these forward-looking statements. If underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Kairos Pharma. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance. In evaluating these forward-looking statements, you should consider various factors, including: statements regarding the use of proceeds from the sale of our shares in the offering; our success in completing newly initiated clinical trials, commence new trials, and obtain regulatory approval following the conclusion of such trials; challenges and uncertainties inherent in product research and development; and the uncertainty regarding future commercial success. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking statements discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us, including those described in Kairos Pharma’s prospectus filed with the SEC. We are not obligated to publicly update or revise any forward-looking statement, and Kairos Pharma is not required to update any forward-looking statement as a result of new information or future events or developments, except as required by U.S. federal securities laws.

Contact:

CORE IR
Louie Toma
investors@kairospharma.com

FAQ

How much did Kairos Pharma raise in its IPO on September 17, 2024?

Kairos Pharma raised $6.2 million in gross proceeds from its initial public offering on September 17, 2024.

What is the stock symbol for Kairos Pharma on the NYSE American?

Kairos Pharma's stock symbol on the NYSE American is KAPA.

How will Kairos Pharma use the proceeds from its IPO?

Kairos Pharma intends to use the IPO proceeds to fund Phase 1 and Phase 2 clinical trials for its lead product ENV 105 and advance preclinical candidates like KROS 101.

What was the price per share for Kairos Pharma's IPO?

The offering price for Kairos Pharma's IPO was $4.00 per share.

When did Kairos Pharma (KAPA) begin trading on the NYSE American?

Kairos Pharma (KAPA) began trading on the NYSE American on September 16, 2024.