Panbela Announces Closing of Approximately $9.0 Million Public Offering

Rhea-AI Summary

Panbela Therapeutics, Inc. (PBLA) has closed a public offering, raising approximately $9.0 million in gross proceeds. The offering included 4,375,000 shares of common stock or pre-funded warrants and two classes of warrants to purchase up to 8,750,000 shares of common stock. The company intends to use the net proceeds for clinical development, working capital, business development, and general corporate purposes.

Insights

Financial Analyst

From a financial perspective, the closing of Panbela Therapeutics' public offering is a significant event, with the company raising approximately $9.0 million in gross proceeds. This capital infusion is crucial for the company's short-term liquidity and long-term strategic initiatives, such as advancing the clinical development of its product candidates. The issuance of both common stock and warrants dilutes current shareholders but provides investors with potential upside through warrants if the stock performs well.

The exercise price of the Public Warrants at $2.06 is noteworthy as it sets a future price point that could influence the stock's trading behavior. The absence of cashless exercise provisions in the Public Warrants indicates a traditional approach to warrant structuring, which could be seen as a vote of confidence in the company's future liquidity and market performance. However, the dilutive effect of the warrants could also be a concern for existing shareholders if a significant number of warrants are exercised in the future.

Market Research Analyst

The biotech sector is known for its high cash burn rates due to the costly nature of clinical trials and product development. Panbela Therapeutics' decision to raise funds through a public offering is a common strategy within this industry. The use of net proceeds for clinical development, working capital and business development is typical and necessary for a company in clinical stages. The market's reaction to such offerings can vary; it often depends on the investor's perception of the company's potential to bring its product candidates to market successfully.

Investor sentiment can be influenced by the terms of the warrants and the perceived value of the underlying stock. In this case, the fact that Roth Capital Partners acted as the sole placement agent could be seen as an indicator of the offering's reception in the investment community. The role of a reputable placement agent often instills confidence in the transaction.

Biotech Industry Analyst

In the biotech industry, the success of clinical trials is a major driver of company value. Panbela Therapeutics' emphasis on allocating the raised funds toward the continued clinical development of its product candidates is a critical move. The outcome of these trials will likely have a profound impact on the company's stock price and market valuation. Stakeholders should monitor the progress of these trials closely, as positive results could lead to significant appreciation in stock value, while negative outcomes could have the opposite effect.

Additionally, the company's mention of using proceeds for potential business development activities such as partnerships or acquisitions could be a strategic endeavor to diversify its pipeline or enhance its market position. Such moves could potentially lead to increased shareholder value in the long term if executed effectively.

MINNEAPOLIS, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Panbela Therapeutics, Inc. (Nasdaq: PBLA), a clinical stage company developing disruptive therapeutics for the treatment of patients with urgent unmet medical needs, today announced the closing of its previously announced public offering of (i) 4,375,000 shares of its common stock or pre-funded warrants in lieu thereof and (ii) two classes of warrants to purchase up to an aggregate of 8,750,000 shares of its common stock (the “Public Warrants”) at a purchase price of $2.06 per share and associated Public Warrants and $2.059 per pre-funded warrant and associated Public Warrants. The pre-funded warrants have an exercise price of $0.001 per share. The Public Warrants have an exercise price of $2.06 per share, are exercisable upon issuance, and will expire five years following the date of issuance. The Public Warrants do not have any alternative cashless exercise or other provisions to adjust their exercise price beyond customary proportionate adjustments for recapitalizations and similar events.

Roth Capital Partners acted as sole placement agent of the offering.

Gross proceeds, before deducting placement agent fees and commissions and offering expenses, were approximately $9.0 million. The Company intends to use the net proceeds from the proposed offering for the continued clinical development of its product candidates, working capital, business development and other general corporate purposes, which may include repayment of debt.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-276367), as amended, that was declared effective by the U.S. Securities and Exchange Commission (“SEC”), on January 26, 2024.  The offering was made solely by means of a prospectus. Copies of the accompanying prospectus relating to and describing the terms of the offering may be obtained at the SEC’s website at www.sec.gov or by contacting Roth Capital Partners, LLC, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660 or by email at rothecm@roth.com.

This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy any 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 registration or qualification under the securities laws of any such state or other jurisdiction. Any offer, if at all, will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

About Panbela
Panbela Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing disruptive therapeutics for patients with urgent unmet medical needs. Panbela’s lead assets are Ivospemin (SBP-101) and Flynpovi. Further information can be found at www.panbela.com. Panbela’s common stock is listed on The Nasdaq Stock Market LLC under the symbol “PBLA”.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements,” including within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “believe,” “can,” “design,” “expect,” “focus,” “intend,” “looking forward,” “may,” “plan,” “positioned,” “potential,” and “will.” All statements other than statements of historical fact are statements that should be deemed forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially and adversely from the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) our ability to obtain additional funding to execute our business and clinical development plans; (ii) progress and success of our clinical development program; (iii) the impact of the current COVID-19 pandemic on our ability to conduct our clinical trials; (iv) our ability to demonstrate the safety and effectiveness of our product candidates: ivospemin (SBP-101) and eflornithine (CPP-1X); (v) our reliance on a third party for the execution of the registration trial for our product candidate Flynpovi ; (vi) our ability to obtain regulatory approvals for our product candidates, SBP-101 and CPP-1X in the United States, the European Union or other international markets; (vii) the market acceptance and level of future sales of our product candidates, SBP-101 and CPP-1X; (viii) the cost and delays in product development that may result from changes in regulatory oversight applicable to our product candidates, SBP-101 and CPP-1X; (ix) the rate of progress in establishing reimbursement arrangements with third-party payors; (x) the effect of competing technological and market developments; (xi) the costs involved in filing and prosecuting patent applications and enforcing or defending patent claims; (xii) our ability to maintain the listing of our common stock on a national securities exchange; and (xiv) such other factors as discussed in Part I, Item 1A under the caption “Risk Factors” in our most recent Annual Report on Form 10-K, any additional risks presented in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Any forward-looking statement made by us in this press release is based on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement or reasons why actual results would differ from those anticipated in any such forward-looking statement, whether written or oral, whether as a result of new information, future developments or otherwise.

Contact Information:

Investors:
James Carbonara
Hayden IR
(646) 755-7412
james@haydenir.com

Media:
Tammy Groene
Panbela Therapeutics, Inc.
(952) 479-1196
IR@panbela.com

FAQ

What is the ticker symbol for Panbela Therapeutics, Inc.?

The ticker symbol for Panbela Therapeutics, Inc. is PBLA.

How much did Panbela Therapeutics, Inc. raise in gross proceeds from the public offering?

Panbela Therapeutics, Inc. raised approximately $9.0 million in gross proceeds from the public offering.

What will Panbela Therapeutics, Inc. use the net proceeds from the public offering for?

The company intends to use the net proceeds from the public offering for the continued clinical development of its product candidates, working capital, business development, and other general corporate purposes, which may include repayment of debt.

How many shares of common stock were included in the public offering?

The public offering included 4,375,000 shares of common stock or pre-funded warrants.

How many classes of warrants were included in the public offering?

The public offering included two classes of warrants to purchase up to 8,750,000 shares of common stock.