TransCode Therapeutics, Inc. Announces Closing of Public Offering

Rhea-AI Summary

TransCode Therapeutics (Nasdaq: RNAZ), a clinical-stage RNA oncology company, has closed its previously announced public offering. The company sold 10,000,000 shares of common stock at $0.30 per share, raising $3,000,000 in gross proceeds before deducting fees and expenses. TransCode plans to use the net proceeds for product development activities, including clinical trials for its lead therapeutic candidate TTX-MC138, related IND enabling studies, and general corporate purposes. ThinkEquity acted as the sole placement agent for the offering, which was made pursuant to an effective shelf registration statement filed with the SEC.

Positive

• Raised $3,000,000 in gross proceeds from public offering
• Funds to be used for clinical trials and development of lead candidate TTX-MC138
• Successful closing of previously announced public offering

Negative

• Potential dilution of existing shareholders due to issuance of 10,000,000 new shares
• Low offering price of $0.30 per share may indicate market concerns
• Net proceeds will be less than $3,000,000 after deducting fees and expenses

Financial Analyst

TransCode Therapeutics' recent public offering of 10 million shares at $0.30 per share, raising $3 million in gross proceeds, is a significant development for the company. However, this move raises some concerns:

• The low share price of $0.30 suggests the company may be struggling financially or facing market skepticism.
• The dilution effect on existing shareholders is substantial, potentially impacting stock value in the short term.
• The gross proceeds of $3 million, while providing some runway, may not be sufficient for extensive clinical trials in the costly field of RNA therapeutics.

On the positive side, the successful closing of the offering does provide TransCode with much-needed capital to advance its lead candidate, TTX-MC138, through clinical trials and IND-enabling studies. This could potentially lead to value-creating milestones if the studies yield positive results.

Investors should closely monitor the company's burn rate and progress in clinical development to assess whether this capital injection will be sufficient to reach significant value inflection points. The involvement of ThinkEquity as the sole placement agent might indicate interest from larger, more established investment banks, which could be a red flag.

Overall, while the offering provides necessary funding, it comes at a cost to shareholders and may not fully resolve the company's financial challenges in the long term.

Medical Research Analyst

TransCode Therapeutics' focus on RNA therapeutics for oncology is aligned with a cutting-edge area of medical research. The company's lead candidate, TTX-MC138, represents a potentially innovative approach to cancer treatment. However, several factors warrant consideration:

• The early stage of development (pre-clinical to early clinical) implies significant risks and a long road ahead before potential commercialization.
• RNA therapeutics, while promising, face challenges in delivery and efficacy, which TransCode will need to overcome.
• The competitive landscape in oncology is fierce, with numerous well-funded companies pursuing similar goals.

The $3 million raised, while helpful, may only support clinical activities. Typically, comprehensive clinical trials in oncology require substantially more funding. This raises questions about the scope and depth of the planned studies for TTX-MC138.

Investors should closely monitor upcoming announcements regarding the design and initiation of clinical trials. Key factors to watch include:

• The specific cancer types being targeted
• The trial design and endpoints
• Any preliminary data on safety and efficacy

While TransCode's approach is intriguing from a scientific perspective, the company faces significant hurdles in translating its research into clinically and commercially viable treatments. The success of TTX-MC138 in upcoming studies will be important in validating the company's technology platform and overall strategy.

BOSTON, July 24, 2024 (GLOBE NEWSWIRE) -- TransCode Therapeutics, Inc. (Nasdaq: RNAZ) (“TransCode” or the “Company”), a clinical-stage RNA oncology company committed to more effectively treating cancer using RNA therapeutics, today announced the closing of its previously announced public offering of 10,000,000 shares of its common stock at a public offering price of $0.30 per share, for gross proceeds of $3,000,000, before deducting placement agent fees and offering expenses.

The Company intends to use the net proceeds from the offering primarily for product development activities, including one or more clinical trials with TTX-MC138, its lead therapeutic candidate, and related investigational new drug (IND) enabling studies, and for working capital and other general corporate purposes.

ThinkEquity acted as sole placement agent for the offering.

The offering was made pursuant to an effective shelf registration statement that has been filed with the U.S. Securities and Exchange Commission (the “SEC”). The final prospectus supplement relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004 Attention: Prospectus Department.

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 registration or qualification under the securities laws of any such state or other jurisdiction.

About TransCode Therapeutics, Inc.
TransCode Therapeutics, Inc. (Nasdaq: RNAZ) 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” as defined by the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as “believe,” “can,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “plan” “potential,” “predict,” “should,” “will,” “would,” or the negative of these terms and similar expressions intended to identify forward-looking statements. These forward-looking statements include statements related to the intended use of the net proceeds. TransCode cautions readers that forward-looking statements are based on management’s expectations and assumptions as of the date of this news release and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not limited to, risks related to prevailing market conditions, the impact of general economic, industry or political conditions in the United States, and various other factors, and the continued listing of the Company’s common stock on the Nasdaq Capital Market. 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 prospectus supplement related to the offering described herein, and in the Company’s annual report on Form 10-K, quarterly report on Form 10-Q and other reports filed with the SEC. Forward-looking statements reflect the Company’s analysis only on their stated date, and TransCode undertakes no obligation to update or revise these statements except as may be required by law.

Investor Relations:

TransCode Therapeutics, Inc.
Tania Montgomery-Hammon
VP Business Development
Tania.montgomery@transcodetherapeutics.com

FAQ

How much did TransCode Therapeutics (RNAZ) raise in its recent public offering?

TransCode Therapeutics (RNAZ) raised $3,000,000 in gross proceeds from its recent public offering by selling 10,000,000 shares at $0.30 per share.

What will TransCode Therapeutics (RNAZ) use the proceeds from its public offering for?

TransCode Therapeutics (RNAZ) intends to use the net proceeds primarily for product development activities, including clinical trials for its lead therapeutic candidate TTX-MC138, related IND enabling studies, and for working capital and general corporate purposes.

Who acted as the placement agent for TransCode Therapeutics' (RNAZ) public offering?

ThinkEquity acted as the sole placement agent for TransCode Therapeutics' (RNAZ) public offering.

When did TransCode Therapeutics (RNAZ) close its public offering?

TransCode Therapeutics (RNAZ) announced the closing of its public offering on July 24, 2024.