Kairos Pharma Prices $6.2 Million Initial Public Offering

Rhea-AI Summary

Kairos Pharma, a clinical stage biopharmaceutical company, has announced the pricing of its initial public offering (IPO) of 1,550,000 common stock shares at $4.00 per share. The company expects to raise $6.2 million in gross proceeds before deducting underwriting fees and other expenses. Kairos Pharma has granted underwriters a 45-day option to purchase up to an additional 232,500 shares at the same price. The company's stock is set to begin trading on the NYSE American under the symbol 'KAPA' on September 16, 2024. Kairos Pharma plans to use the net proceeds to fund its Phase 1 trial in lung cancer and Phase 2 trial in prostate cancer for its lead product candidate ENV 105, as well as advance preclinical candidates like KROS 101.

Positive

• Successful pricing of IPO, raising $6.2 million in gross proceeds
• Listing on NYSE American exchange, potentially increasing visibility and liquidity
• Funds allocated to advance clinical trials for lead product candidate ENV 105
• Development of preclinical candidates, including KROS 101, a GITR ligand agonist

Negative

• Relatively small IPO size may limit available funds for extensive R&D
• Potential dilution of existing shareholders' value due to new share issuance
• Early-stage clinical trials carry inherent risks of failure or delays

Insights

Financial Analyst

Kairos Pharma's $6.2 million IPO is a modest raise for a clinical-stage biotech company. The $4.00 per share price point suggests cautious investor sentiment. With 1,550,000 shares offered, plus a potential 232,500 additional shares, the company's initial float is relatively small. This could lead to higher volatility in early trading. The $6.2 million gross proceeds, before expenses, may provide runway for their clinical trials. Investors should closely monitor cash burn rate and potential need for future financing. The NYSE American listing offers visibility, but the small cap nature of this stock implies higher risk. The September 16, 2024 trading start under 'KAPA' symbol marks a significant milestone for the company's public journey.

Oncology Doctor

Kairos Pharma's focus on reversing cancer drug resistance and immune suppression addresses critical challenges in oncology. Their lead candidate, ENV 105, targeting lung and prostate cancers, could potentially enhance the efficacy of existing treatments. The Phase 1 trial in lung cancer and Phase 2 trial in prostate cancer are pivotal stages that will determine the drug's safety and efficacy. The preclinical candidate KROS 101, a GITR ligand agonist, shows promise in boosting T cell function against cancer. However, investors should note that success in preclinical and early clinical stages doesn't guarantee FDA approval. The company's approach aligns with current trends in personalized medicine and immunotherapy, but competition in this space is fierce.

Market Research Analyst

The biotech sector is known for high risk and potential high rewards. Kairos Pharma's IPO, while modest, enters a market with increasing interest in cancer therapeutics. The company's focus on drug resistance and immune suppression aligns with key industry trends. However, the small IPO size may limit initial institutional investor participation. The 15% over-allotment option is standard but may not significantly impact liquidity. Investor sentiment towards small-cap biotech firms has been cautious recently, influenced by broader market volatility and regulatory uncertainties. Kairos will need to demonstrate clear clinical progress and effective cash management to maintain investor confidence post-IPO. The NYSE American listing provides a reputable platform, but the company will face scrutiny typical of newly public entities in this challenging sector.

Company anticipates commencement of trading on the NYSE American effective September 16, 2024 under the symbol “KAPA”

LOS ANGELES, Sept. 16, 2024 (GLOBE NEWSWIRE) -- Kairos Pharma, Ltd. (“Kairos Pharma” or the “Company”), a clinical stage biopharmaceutical company developing cancer therapeutics designed to reverse cancer drug resistance and immune suppression, announces the pricing of its initial public offering of 1,550,000 shares of common stock at a public offering price of $4.00 per share. In addition, 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, to cover over-allotments, if any. The Company’s common stock has been approved for listing on the NYSE American LLC (“NYSE American”). Trading is expected to begin on September 16, 2024 under the symbol “KAPA.”

The gross proceeds from the offering, before deducting underwriting fees and other offering expenses payable by the Company, are expected to be $6.2 million. The offering is expected to close on or about September 17, 2024, subject to the satisfaction of customary closing conditions. 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 standard of care 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.  

Boustead Securities, LLC is acting as lead managing underwriter for the offering, and EF Hutton LLC is acting as co-managing underwriter for the offering.

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 Private Securities Litigation Reform Act of 1995. 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: our expectations regarding the completion, timing and size of the proposed initial public offering; 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

What is the IPO price for Kairos Pharma (KAPA) stock?

Kairos Pharma (KAPA) priced its IPO at $4.00 per share.

How many shares did Kairos Pharma (KAPA) offer in its IPO?

Kairos Pharma (KAPA) offered 1,550,000 shares of common stock in its initial public offering.

When will Kairos Pharma (KAPA) stock start trading on the NYSE American?

Kairos Pharma (KAPA) stock is expected to begin trading on the NYSE American on September 16, 2024.

What will Kairos Pharma (KAPA) use the IPO proceeds for?

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