Leap Therapeutics Announces Closing of Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Leap Therapeutics, Inc. (NASDAQ:LPTX) has successfully closed a public offering of 20,250,000 shares of common stock and pre-funded warrants for an estimated gross amount of $45 million. The offering, managed by Piper Sandler & Co. and Raymond James & Associates, utilized an effective shelf registration statement previously filed with the SEC. These funds will support Leap's development of targeted and immuno-oncology therapeutics, particularly its lead candidate DKN-01, currently in clinical trials for various cancers. Detailed offering materials are available on the SEC website.

Positive

• The public offering raised approximately $45 million, which can be used for further development of DKN-01 and other business operations.
• Leap's most advanced candidate, DKN-01, is in clinical trials for multiple cancers, potentially increasing its market value.
• The offering was managed by reputable firms, including Piper Sandler and Raymond James, indicating strong market confidence.

Negative

• The offering may lead to shareholder dilution due to the issuance of new shares.
• There are inherent risks associated with ongoing clinical trials, including potential delays and uncertain outcomes.

CAMBRIDGE, Mass., June 22, 2020 /PRNewswire/ -- Leap Therapeutics, Inc. (NASDAQ:LPTX), a biotechnology company focused on developing targeted and immuno-oncology therapeutics, today announced the closing of a public offering of 20,250,000 shares of common stock and pre-funded warrants to purchase up to 2,250,000 shares of its common stock. The gross proceeds to Leap from this offering were approximately $45 million, before deducting underwriting discounts and commissions and other offering expenses payable by Leap.

Piper Sandler & Co. and Raymond James & Associates, Inc. acted as book-running managers for the offering. Robert W. Baird & Co. Incorporated acted as the lead manager for the offering. H.C. Wainwright & Co. and Ladenburg Thalmann & Co. Inc. acted as co-managers for the offering.

The securities were offered and sold pursuant to an effective shelf registration statement on Form S-3 (File No. 333-223419) that was previously filed by Leap with the Securities and Exchange Commission (the "SEC") on March 2, 2018 and was declared effective by the SEC on March 16, 2018. A preliminary prospectus supplement and the related prospectus have been filed with the SEC and are available for free on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from: Piper Sandler & Co., 800 Nicollet Mall, J12S03, Minneapolis, MN, 55402, Attention: Prospectus Department, by telephone at (800) 747-3924 or by email at prospectus@psc.com or Raymond James & Associates, Inc., Attention: Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716, or by telephone at (800) 248-8863, or e-mail at prospectus@raymondjames.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy 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 Leap Therapeutics

Leap Therapeutics (Nasdaq:LPTX) is focused on developing targeted and immuno-oncology therapeutics. Leap's most advanced clinical candidate, DKN-01, is a humanized monoclonal antibody targeting the Dickkopf-1 (DKK1) protein, a Wnt pathway modulator. DKN-01 is in clinical trials in patients with esophagogastric, hepatobiliary, gynecologic, and prostate cancers. Leap has formed a partnership with BeiGene, Ltd. for the rights to develop DKN-01 in Asia (excluding Japan), Australia, and New Zealand. For more information about Leap Therapeutics, visit http://www.leaptx.com or our public filings with the SEC that are available via EDGAR at http://www.sec.gov or via https://investors.leaptx.com/.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. These statements include statements relating to the offering, Leap's expectations with respect to the development and advancement of DKN-01, including the initiation, timing and design of future studies, enrollment in future studies, potential for the receipt of future option exercise, milestones or royalty payments from BeiGene, and other future expectations, plans and prospects. Although Leap believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to: that the initiation, conduct, and completion of clinical trials, laboratory operations, manufacturing campaigns, and other studies may be delayed, adversely affected, or impacted by COVID-19 related issues, the accuracy of our estimates regarding expenses, future revenues, capital requirements and needs for financing; the outcome, cost, and timing of our product development activities and clinical trials; the uncertain clinical development process, including the risk that clinical trials may not have an effective design or generate positive results; our ability to obtain and maintain regulatory approval of our drug product candidates; the size and growth potential of the markets for our drug product candidates; our ability to continue obtaining and maintaining intellectual property protection for our drug product candidates; and other risks. Detailed information regarding factors that may cause actual results to differ materially will be included in Leap Therapeutics' periodic filings with the SEC, including Leap's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC on March 16, 2020 and as may be updated by Leap's Quarterly Reports on Form 10-Q and the other reports we file from time to time with the SEC. Any forward-looking statements contained in this release speak only as of its date. We undertake no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

CONTACT:

Douglas E. Onsi
President & Chief Executive Officer
Leap Therapeutics, Inc.
617-714-0360
donsi@leaptx.com

Heather Savelle
Investor Relations
Argot Partners
212-600-1902
heather@argotpartners.com

 

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SOURCE Leap Therapeutics, Inc.

FAQ

What is the purpose of Leap Therapeutics' recent stock offering?

Leap Therapeutics aims to raise funds for the development of its lead therapeutic candidate, DKN-01, and for other business needs.

How much did Leap Therapeutics raise in their recent public offering?

The company raised approximately $45 million in gross proceeds from the offering.

What is the stock symbol for Leap Therapeutics?

The stock symbol for Leap Therapeutics is LPTX.

Who managed Leap Therapeutics' public offering?

Piper Sandler & Co. and Raymond James & Associates served as the book-running managers for the offering.

What are the risks associated with Leap Therapeutics' clinical trials?

The clinical trials may face delays or may not yield positive results, impacting the company's future prospects.