MAIA Biotechnology Announces Private Placement of Approximately $950,000

Rhea-AI Summary

MAIA Biotechnology (NYSE American: MAIA) has announced a private placement of 507,364 shares of common stock at $1.872 per share to accredited investors and company directors. Each share comes with a warrant to purchase one additional share at $2.08, exercisable after six months with a five-year term.

The placement is expected to raise approximately $950,000 in gross proceeds, closing around December 11, 2024. The funds will be used to manufacture THIO for Phase II clinical trials and working capital. The securities are being offered under Section 4(a)(2) of the Securities Act and Regulation D, and have not been registered under the Securities Act.

Positive

• Secured additional funding of $950,000 through private placement
• Warrants provide potential for additional future capital at $2.08 per share

Negative

• Dilution of existing shareholders through new share issuance
• Below market price offering at $1.872 per share

Insights

Financial Analyst

This $950,000 private placement, while providing needed capital, represents a relatively small fundraising effort that may only provide short-term runway. The offering price of $1.872 per share with warrants at $2.08 suggests minimal premium, indicating challenging market conditions for biotechnology financing. The warrant structure, with a 5-year term and 6-month exercise delay, provides potential future upside but also signals potential dilution risk. The participation of company directors in the placement demonstrates insider confidence but the small size raises questions about the company's ability to secure larger institutional investments. With a market cap of ~$53M, this financing represents less than 2% dilution but may not be sufficient for extensive clinical trial advancement.

Medical Research Analyst

The stated use of proceeds for manufacturing THIO for Phase II clinical trials indicates progression in the company's clinical development program, but the funding raise may constrain the scope or pace of these trials. For a clinical-stage biopharmaceutical company developing targeted immunotherapies, $950,000 is a modest sum that may only cover initial manufacturing costs. This suggests additional fundraising will likely be needed in the near term to fully support Phase II trials. The company's focus on targeted immunotherapies remains promising in the competitive oncology space, but adequate capitalization will be important for meaningful clinical advancement.

CHICAGO--(BUSINESS WIRE)-- MAIA Biotechnology, Inc., (NYSE American: MAIA) (“MAIA”, the “Company”), a clinical-stage biopharmaceutical company developing targeted immunotherapies for cancer, today announced that it has entered into definitive agreements for the purchase and sale of an aggregate of 507,364 shares of common stock at a purchase price of $1.872 per share, in a private placement to accredited investors and certain Company directors. Each share of common stock is being offered together with a warrant to purchase one share of common stock at an exercise price of $2.08 per share, which price represents the greater of the book or market value of the stock on the date the definitive agreements were executed (subject to customary adjustments as set forth in the warrants). The warrants are exercisable commencing six months following issuance and have a term of five years from the initial exercise date. The securities being sold to the Company director participating in the offering are being issued pursuant to the Company’s 2021 Equity Incentive Plan. The private placement is expected to close on or about December 11, 2024, subject to the satisfaction of customary closing conditions.

The gross proceeds from the offering are expected to be approximately $950,000, prior to offering expenses payable by the Company. The Company intends to use the net proceeds received from the sale of the Securities to fund manufacturing of THIO for Phase II clinical trials and for working capital.

The securities described above are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the warrants and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

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

About MAIA Biotechnology, Inc.

MAIA is a targeted therapy, immuno-oncology company focused on the development and commercialization of potential first-in-class drugs with novel mechanisms of action that are intended to meaningfully improve and extend the lives of people with cancer. Our lead program is THIO, a potential first-in-class cancer telomere targeting agent in clinical development for the treatment of NSCLC patients with telomerase-positive cancer cells. For more information, please visit www.maiabiotech.com.

Forward Looking Statements

MAIA cautions that all statements, other than statements of historical facts contained in this press release, are forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause our or our industry’s actual results, levels or activity, performance or achievements to be materially different from those anticipated by such statements. The use of words such as “may,” “might,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “future,” “potential,” or “continue,” and other similar expressions are intended to identify forward looking statements. However, the absence of these words does not mean that statements are not forward-looking. For example, all statements we make regarding (i) the initiation, timing, cost, progress and results of our preclinical and clinical studies and our research and development programs, (ii) our ability to advance product candidates into, and successfully complete, clinical studies, (iii) the timing or likelihood of regulatory filings and approvals, (iv) our ability to develop, manufacture and commercialize our product candidates and to improve the manufacturing process, (v) the rate and degree of market acceptance of our product candidates, (vi) the size and growth potential of the markets for our product candidates and our ability to serve those markets, (vii) our expectations regarding our ability to obtain and maintain intellectual property protection for our product candidates; (viii) the completion of the offering and (ix) the satisfaction of customary closing conditions related to the offering, are forward looking. All forward-looking statements are based on current estimates, assumptions and expectations by our management that, although we believe to be reasonable, are inherently uncertain. Any forward-looking statement expressing an expectation or belief as to future events is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and are subject to risks and uncertainties and other factors beyond our control that may cause actual results to differ materially from those expressed in any forward-looking statement. Any forward-looking statement speaks only as of the date on which it was made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. In this release, unless the context requires otherwise, “MAIA,” “Company,” “we,” “our,” and “us” refers to MAIA Biotechnology, Inc. and its subsidiaries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241209021300/en/

Investor Relations Contact

+1 (872) 270-3518

ir@maiabiotech.com

Source: MAIA Biotechnology, Inc.

FAQ

What is the price per share in MAIA Biotechnology's December 2023 private placement?

MAIA Biotechnology's private placement offers shares at $1.872 per share.

How much money is MAIA Biotechnology raising in their latest private placement?

MAIA Biotechnology is raising approximately $950,000 in gross proceeds through this private placement.

What will MAIA Biotechnology use the private placement proceeds for?

The proceeds will be used to fund manufacturing of THIO for Phase II clinical trials and for working capital.

What are the terms of the warrants in MAIA's private placement?

The warrants have an exercise price of $2.08 per share, are exercisable after six months, and have a five-year term from the initial exercise date.