Phio Pharmaceuticals Secures New Investor
Phio Pharmaceuticals (Nasdaq: PHIO) announced a purchase agreement with TRITON Funds on May 17, 2024. TRITON Funds will acquire up to 18.8% of Phio's common shares, potentially generating up to $621,000 in gross proceeds for the company. This investment underlines TRITON's confidence in Phio's proprietary INTASYL™ siRNA gene silencing technology, which aims to enhance the effectiveness of immune cells in targeting tumor cells. The funds were offered under a shelf registration statement filed with the SEC in May 2021, ensuring regulatory compliance. Phio's President and CEO, Robert Bitterman, expressed satisfaction with the investment, viewing it as further validation of their innovative approach to treating solid tumors.
- TRITON Funds' investment may yield up to $621,000 in gross proceeds for Phio Pharmaceuticals.
- TRITON Funds will acquire up to 18.8% of Phio's common shares, signifying strong investor confidence.
- The investment highlights Phio's innovative INTASYL™ siRNA gene silencing technology.
- The purchase agreement was made under a previously filed SEC shelf registration, ensuring regulatory compliance.
- TRITON's investment is seen as recognition of Phio's unique approach to treating solid tumors.
- The investment is dependent on the terms of the purchase agreement, introducing potential uncertainty.
- An 18.8% share acquisition could lead to shareholder dilution.
- The gross proceeds of $621,000, while beneficial, might be relatively small for long-term strategic goals.
Insights
The purchase agreement with TRITON Funds holds substantial implications for Phio Pharmaceuticals. To begin with, the 18.8% acquisition of Phio's common shares will inject up to
From a financial perspective, the deal benefits Phio by improving its liquidity and possibly extending its runway for operational expenses and clinical trials. However, this also entails a dilution of existing shareholders' equity, as more shares are introduced into the market. For retail investors, it's critical to weigh the immediate financial boost against the potential long-term impact of share dilution on earnings per share (EPS).
Short-term, the market might respond positively to the news of additional capital and institutional backing, potentially resulting in a temporary stock price uptick. In the long term, the investment's success hinges on the effectiveness and commercial viability of the INTASYL™ technology. Investors should keep an eye on forthcoming clinical trial results and any regulatory milestones that Phio might achieve, as these will be pivotal in determining the technology's market potential and, consequently, the stock's valuation.
Moreover, it's important to monitor broader industry trends and the competitive landscape within the biotech sector, as these can significantly influence Phio's market standing and growth trajectory.
Phio Pharmaceuticals' INTASYL™ technology is at the forefront of gene silencing innovations. This approach aims to enhance the cytotoxic activity of immune cells, particularly T-cells, thereby improving their ability to target and destroy tumor cells. For investors, understanding the scientific basis and potential efficacy of this technology is crucial.
The concept behind gene silencing, especially using siRNA (small interfering RNA), is to disrupt the expression of specific genes that might be aiding tumor growth or survival. By making immune cells more effective, Phio's technology could offer a novel therapeutic strategy for solid tumors, which are often challenging to treat with conventional therapies. The infusion of capital from TRITON Funds enables Phio to advance their clinical trials and potentially accelerate the path to regulatory approvals.
However, investors should be cognizant of the inherent risks associated with clinical-stage biotech companies. The success of INTASYL™ depends on positive clinical trial outcomes and subsequent regulatory endorsements. Additionally, the competitive landscape in oncological therapies is intense, with numerous companies exploring similar pathways. Phio's ability to differentiate its technology and demonstrate superior efficacy and safety will be key to its commercial success.
Ultimately, while the investment from TRITON is promising, stakeholders should remain vigilant about trial results, adherence to regulatory pathways and any emerging data that might impact the strategic direction and market potential of INTASYL™ technology.
--Fund invests in microcap equities
MARLBOROUGH, Mass., May 17, 2024 (GLOBE NEWSWIRE) -- Phio Pharmaceuticals Corp. (Nasdaq: PHIO), a clinical stage biotechnology company whose proprietary INTASYL™ siRNA gene silencing technology is designed to make immune cells more effective in killing tumor cells, today announced it has entered into a purchase agreement with TRITON Funds.
Subject to the terms of the purchase agreement, TRITON will purchase up to approximately
“We are very pleased to have TRITON Funds take a significant position in our Company,” said Robert Bitterman, Phio President and CEO. “Their investment in microcap companies which develop breakthrough technologies establishes further recognition for our INTASYL program as a unique alternative for treatment of solid tumors.”
The securities described above were offered pursuant to an effective shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 13, 2021 and declared effective by the SEC on May 21, 2021 (File No. 333-256100). A final prospectus supplement containing additional information relating to the offering, will be filed with the SEC and will be available on the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Phio Pharmaceuticals Corp.
Phio Pharmaceuticals Corp. (Nasdaq: PHIO) is a clinical stage biotechnology company whose proprietary INTASYL™ siRNA gene silencing technology is designed to make immune cells more effective in killing tumor cells. INTASYL is the only self-delivering RNAi technology focused on immuno-oncology therapeutics. INTASYL drugs precisely target specific proteins that reduce the body's ability to fight cancer, without the need for specialized formulations or drug delivery systems.
For additional information, visit the Company's website, www.phiopharma.com.
About TRITON FUNDS
TRITON FUNDS invests in high performance teams with revolutionary aspirations to grow their company into industry leaders. They provide strategic capitalization to organizations they believe have a viable future in the modern economy. For more information, visit www.tritonfunds.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "intends," "believes," "anticipates," "indicates," "plans," "expects," "suggests," "may," "would," "should," "potential," "designed to," "will," "ongoing," "estimate," "forecast," "target," "predict," "could" and similar references, although not all forward-looking statements contain these words. These statements, which include statements regarding the anticipated benefits of our INTASYL™ siRNA platform and the amount of gross proceeds raised pursuant to the purchase agreement with TRITON funds, are based only on our current beliefs, expectations and assumptions and 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 may differ materially from those indicated in the forward-looking statements as a result of a number of important factors, including, but not limited to, the impact to our business and operations by inflationary pressures, rising interest rates, recession fears, the development of our product candidates, results from our preclinical and clinical activities, our ability to execute on business strategies, our ability to develop our product candidates with collaboration partners, and the success of any such collaborations, the timeline and duration for advancing our product candidates into clinical development, the timing or likelihood of regulatory filings and approvals, the success of our efforts to commercialize our product candidates if approved, our ability to manufacture and supply our product candidates for clinical activities, and for commercial use if approved, the scope of protection we are able to establish and maintain for intellectual property rights covering our technology platform, our ability to obtain future financing, market and other conditions and those risks identified in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q under the caption "Risk Factors" and in other filings the Company periodically makes with the SEC. Readers are urged to review these risk factors and to not act in reliance on any forward-looking statements, as actual results may differ from those contemplated by our forward-looking statements. Phio does not undertake to update forward-looking statements to reflect a change in its views, events or circumstances that occur after the date of this release, except as required by law.
Contact:
Phio Pharmaceuticals Corp.
ir@phiopharma.com
PR Contact
Michael Adams
Bridge View Media
adams@bridgeviewmedia.com
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