TransCode Therapeutics, Inc. Announces Pricing of Public Offering

Rhea-AI Summary

TransCode Therapeutics (Nasdaq: RNAZ), an RNA oncology company, has announced the pricing of a public offering of 10,000,000 shares of common stock at $0.30 per share. The offering is expected to raise $3,000,000 in gross proceeds and close on July 24, 2024. The company plans to use the net proceeds for product development activities, including clinical trials for its lead candidate TTX-MC138, and for working capital. ThinkEquity is acting as the sole placement agent for this offering, which is being conducted under a shelf registration statement filed with the SEC.

Positive

• Raised $3 million in gross proceeds through public offering
• Funds to be used for clinical trials of lead candidate TTX-MC138
• Successful pricing of public offering indicates investor interest

Negative

• Potential dilution of existing shareholders due to 10 million new shares
• Low offering price of $0.30 per share may indicate weak market position
• Additional funding needed for product development suggests cash burn

Insights

Financial Analyst

TransCode Therapeutics' public offering signifies a strategic move to bolster its financial resources. The offering price of $0.30 per share for 10,000,000 shares targets raising $3,000,000 in gross proceeds. This pricing likely reflects the company's current market valuation and investor sentiment towards its clinical-stage RNA oncology focus.

From a financial perspective, this funding round will provide important liquidity for clinical trial execution and product development. Given the high costs associated with clinical trials, particularly in oncology, securing additional funds is vital for sustaining operations and advancing the pipeline. However, investors should note that this dilution of shares might impact existing shareholders by reducing their percentage of ownership.

In the short-term, the stock price may experience volatility due to the dilution effect and market reaction to the public offering. In the long-term, successful deployment of these funds towards advancing their lead candidate, TTX-MC138, could enhance shareholder value if clinical milestones are achieved.

Market Research Analyst

TransCode Therapeutics' public offering at $0.30 per share is a clear indication of the company's current market positioning and investor confidence. The offering price is often a reflection of market interest and perceived risk. The fact that they are utilizing a shelf registration strategy allows for flexibility in raising capital as market conditions permit.

The allocation of proceeds towards clinical trials and development of TTX-MC138 shows a targeted approach to enhancing core assets. This focus on a lead therapeutic candidate suggests confidence in the potential efficacy and market viability of TTX-MC138.

Investors should monitor the upcoming milestones for TTX-MC138 closely. Positive results from IND-enabling studies or clinical trials could be significant catalysts for stock appreciation. Conversely, setbacks could impact investor sentiment and stock performance.

Medical Research Analyst

TransCode Therapeutics' decision to allocate funds primarily towards clinical trials for TTX-MC138 underscores the importance of this candidate in their pipeline. TTX-MC138's development progress will be critical for TransCode's future valuation and market success.

From a medical standpoint, RNA therapeutics represent a cutting-edge approach in oncology, with the potential to offer more effective treatments compared to traditional methods. The funds will enable rigorous testing and validation of TTX-MC138, which is essential for demonstrating efficacy and safety to regulatory authorities.

If TTX-MC138 shows positive results in clinical trials, it could lead to significant advancements in cancer treatment, offering new hope for patients and potentially substantial returns for investors. However, the inherently high risk in clinical-stage biopharmaceutical development means that investors should be prepared for potential uncertainties and setbacks.

BOSTON, July 22, 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 pricing of a public offering of 10,000,000 shares of its common stock at a public offering price of $0.30 per share, for expected gross proceeds of $3,000,000, before deducting placement agent commissions and offering expenses. All of the shares of common stock are being offered by the Company. The offering is expected to close on July 24, 2024, subject to satisfaction of customary closing conditions.

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 is acting as the sole placement agent for the offering.

The securities are being offered and sold pursuant to a shelf registration statement on Form S-3 (File No. 268764), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 13, 2022, and declared effective on December 16, 2022. The offering is being made only by means of a written prospectus forming part of the effective shelf registration statement. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering were filed with the SEC and are available on its website at www.sec.gov. A final prospectus supplement relating to the offering will be filed with the SEC and will be available on its website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

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 jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About TransCode Therapeutics, Inc.

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 release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, 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 “aim,” “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” "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 and risks 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. These risks and uncertainties include, but are not limited to: TransCode’s ability to satisfy the closing conditions related to the offering and the timing and completion of such closing, the use of the net proceeds of the offering, various other factors, and the continued listing of our 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 preliminary prospectus supplement related to the offering described herein, and the Company’s annual report on Form 10-K, quarterly report on Form 10-Q 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.

Investor Relations:

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

FAQ

What is the purpose of TransCode Therapeutics' (RNAZ) public offering announced on July 22, 2024?

TransCode Therapeutics (RNAZ) is conducting a public offering to raise funds primarily for product development activities, including clinical trials for its lead therapeutic candidate TTX-MC138, and for working capital and general corporate purposes.

How many shares and at what price is TransCode Therapeutics (RNAZ) offering in its July 2024 public offering?

TransCode Therapeutics (RNAZ) is offering 10,000,000 shares of its common stock at a public offering price of $0.30 per share.

What are the expected gross proceeds from TransCode Therapeutics' (RNAZ) July 2024 public offering?

The expected gross proceeds from TransCode Therapeutics' (RNAZ) public offering are $3,000,000, before deducting placement agent commissions and offering expenses.

When is the closing date for TransCode Therapeutics' (RNAZ) July 2024 public offering?

The public offering is expected to close on July 24, 2024, subject to satisfaction of customary closing conditions.