TransCode Therapeutics Announces Closing of $7.25 Million Public Offering
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Insights
The completion of TransCode Therapeutics' public offering is a significant financial event for the company. With the gross proceeds amounting to $7.25 million before costs, the capital raised is set to bolster the company's financial position. This influx of funds is particularly crucial for a biotech firm like TransCode, which typically faces high research and development costs. The offering's structure, including both shares and warrants, provides investors with the potential for future equity participation, which could be seen as a vote of confidence in the company's prospects, albeit the exercise price being set at the public offering price suggests a moderate outlook on stock appreciation.
From an investment perspective, the immediate exercisability of the warrants could lead to a dilution of shares if many warrant holders choose to exercise their rights, potentially affecting the stock's price. However, the three-and-a-half-year expiration term offers a reasonable time frame for observing the company's progress and clinical trial outcomes before making a decision on the exercise. The targeted use of funds for product development and clinical trials is a typical move for a company in the biotech sector, aiming to advance its lead therapeutic candidate to the next stage of development.
The allocation of net proceeds from TransCode Therapeutics' public offering towards the development of TTX-MC138 and related IND-enabling studies is a pivotal step for the company's pipeline. TTX-MC138, as a lead therapeutic candidate, represents a substantial part of the company's value proposition and potential future revenue streams. The success of clinical trials and the progression of TTX-MC138 through the regulatory pathway are critical for the company's long-term prospects.
Investigational New Drug (IND) enabling studies are a prerequisite for clinical trials and involve a series of preclinical assessments to ensure the safety and efficacy of a candidate drug. The results from these studies will be crucial in determining whether TTX-MC138 can proceed to human trials and ultimately impact the company's valuation and stock performance. The focus on these activities highlights the company's commitment to advancing its oncology pipeline, which could have significant implications for patients and the broader medical community if successful.
The biotechnology sector is highly competitive and investment-intensive, with a long lead time to product commercialization. TransCode Therapeutics' recent public offering reflects a strategic move to secure necessary capital for its continued investment in research and development. The decision to allocate funds specifically for clinical trials and IND-enabling studies indicates a clear focus on advancing their lead product candidate, which could potentially meet unmet medical needs in the oncology space.
Analyzing the market response to such offerings provides insights into investor sentiment regarding the company's future. The terms of the offering, including the pricing of shares and warrants, will likely be scrutinized by the market to gauge both the short-term liquidity impact and the long-term potential for return on investment. Furthermore, the involvement of a prominent placement agent like H.C. Wainwright & Co. adds a layer of credibility to the offering and could influence investor perception.
BOSTON, Jan. 22, 2024 (GLOBE NEWSWIRE) -- TransCode Therapeutics, Inc. (Nasdaq: RNAZ) (the “Company”), an RNA oncology company committed to more effectively treating cancer using RNA therapeutics, today announced the closing of its previously announced public offering of an aggregate of 5,942,623 shares of its common stock (or common stock equivalents) and warrants to purchase up to 11,885,246 shares of common stock at a combined public offering price of
H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.
The gross proceeds from the offering, before deducting the placement agent's fees and other offering expenses, were
The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-276467), which was declared effective by the Securities and Exchange Commission (the “SEC”) on January 18, 2024. The offering was made only by means of a prospectus forming part of the effective registration statement relating to the offering. A final prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, 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 TransCode Therapeutics
TransCode is a clinical-stage oncology company focused on treating metastatic disease. The company is committed to defeating cancer through the intelligent design and effective delivery of RNA therapeutics based on its proprietary TTX nanoparticle platform. The company’s lead therapeutic candidate, TTX-MC138, is focused on treating metastatic tumors which overexpress microRNA-10b, a unique, well-documented biomarker of metastasis. In addition, TransCode is developing a portfolio of first-in-class RNA therapeutic candidates designed to overcome the challenges of RNA delivery and thus unlock therapeutic access to a variety of novel genetic targets that could be relevant to treating a variety of cancers.
Forward-Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties, including statements related to the completion of the offering. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate, including the number of shares that may be issued, and amount of proceeds that may be received by the Company pursuant to the offering and various other factors and the continued listing of our common stock in general as well as the listing of the common stock being sold in this offering on the Nasdaq Capital Market relating to possible non-compliance with Nasdaq’s Market Place Rule 5635 (the shareholder approval rule), Nasdaq Listing Rule 5550(b)(1) (the stockholders’ equity requirement), and Nasdaq Listing Rule 5550(a)(2) (the minimum bid price requirement). These and other risks and uncertainties are described more fully in the sections titled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the registration statement and in the final prospectus related to the offering described herein, and the Company’s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
For more information, please contact:
Tom Fitzgerald, Interim CEO; CFO
tom.fitzgerald@transcodetherapeutics.com
857-837-3099
FAQ
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