Portage Biotech Announces Completion of $2.15 Million Private Financing

Rhea-AI Summary

Portage Biotech (NASDAQ: PRTG), a clinical-stage immuno-oncology company, has successfully completed a private placement raising $2.15 million through the sale of 524,390 ordinary shares at $4.10 per share. The financing was secured from two Portage directors at the Nasdaq official Closing Price as of January 22, 2025. The company plans to utilize the proceeds for working capital and general corporate purposes across Portage and its subsidiaries.

Positive

• Secured $2.15 million in immediate funding
• Directors showing confidence through insider investment
• Shares priced at market value without discount

Negative

• Relatively small financing amount may indicate funding options
• Dilution of existing shareholders' equity

Insights

Financial Analyst

The $2.15 million private placement, while modest in size for a clinical-stage biotech company, carries strategic significance through strong insider participation from two directors. This internal support sends a positive signal about management's confidence, particularly valuable given current challenging market conditions for biotech financing.

The pricing at $4.10 per share represents a 10% discount to current trading levels, which is relatively favorable compared to typical PIPE (Private Investment in Public Equity) transactions in the biotech sector that often see 15-20% discounts. However, the size of the raise suggests this is more of a bridge financing than a transformative capital injection.

For context, clinical-stage biotech companies typically burn through $2-4 million monthly in R&D expenses. This financing likely provides only 1-2 months of additional runway, indicating that Portage may need to secure additional funding in the near term. The company's ability to attract insider investment on relatively favorable terms could help position it for larger subsequent financing rounds, though timing and terms will be important given current market dynamics.

DOVER, Del., Jan. 30, 2025 (GLOBE NEWSWIRE) -- Portage Biotech, Inc. (“Portage” or the “Company”) (NASDAQ: PRTG), a clinical-stage immuno-oncology company with a portfolio of innovative therapeutics, today announced that it has completed a private placement of $2.15 million from two Portage directors. The 524,390 ordinary shares were sold at $4.10 per share, the Nasdaq official Closing Price on January 22, 2025.

Portage intends to use the proceeds from the financing for working capital and other general corporate purposes for Portage and its subsidiaries.

About Portage Biotech, Inc.
Portage Biotech is a clinical-stage immuno-oncology company advancing a pipeline of novel biologics to transform the immune system’s ability to fight cancer. For more information, visit www.portagebiotech.com.

Forward-Looking Statements
All statements in this news release, other than statements of historical facts, including without limitation, statements regarding the Company’s business strategy, plans and objectives of management for future operations and those statements preceded by, followed by or that otherwise include the words “believe,” “expects,” “anticipates,” “intends,” “estimates,” “will,” “may,” “plans,” “potential,” “continues,” or similar expressions or variations on such expressions are forward-looking statements. As a result, forward-looking statements are subject to certain risks and uncertainties, including, but not limited to: the risk that the Company may not secure financing, the uncertainty of the Company’s ability to continue as a going concern, and other factors set forth in “Item 3 - Key Information-Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended March 31, 2024 and “Business Environment – Risk Factors” in the Company’s Management’s Discussion and Analysis for the Three and Six Months ended September 30, 2024 filed as Exhibit 99.2 to the Company’s Form 6-K. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

For More Information:
Portage Biotech
Alexander Pickett, Chief Executive Officer
ir@portagebiotech.com

FAQ

How much did Portage Biotech (PRTG) raise in its January 2025 private placement?

Portage Biotech raised $2.15 million through a private placement completed in January 2025.

What was the share price for PRTG's January 2025 private placement?

The shares were sold at $4.10 per share, which was the Nasdaq official Closing Price on January 22, 2025.

How many shares did Portage Biotech (PRTG) issue in the January 2025 private placement?

Portage Biotech issued 524,390 ordinary shares in the private placement.

Who participated in PRTG's January 2025 private placement?

Two Portage directors participated in the private placement.

What will Portage Biotech use the January 2025 private placement proceeds for?

The proceeds will be used for working capital and other general corporate purposes for Portage and its subsidiaries.