RenovoRx Announces $11.1 Million at Market Private Placement
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Insights
A recent private placement by RenovoRx has garnered approximately $11.1 million, supplementing a prior round of $6.1 million. This strategic move extends the company's operational liquidity into 2026, which is a significant buffer for a clinical-stage biopharmaceutical firm. The funds are earmarked for the TIGeR-PaC clinical trial, a Phase III study for pancreatic cancer treatment and to diversify the TAMP clinical pipeline. The financial health of a biopharmaceutical company is pivotal, especially when navigating the costly and time-intensive process of clinical trials. RenovoRx's ability to secure funding at market price indicates investor confidence, which can be a positive signal to the market.
The terms of the private placement, including the issuance of common stock and Series A and B Warrants, offer additional insights. Warrants are a common fundraising instrument in biotech, providing investors with the option to purchase more stock at a set price. This can potentially dilute current shareholders but also reflects an investment in the company's future growth. The callable feature of the Series B Warrants after 6 months, subject to price and volume conditions, allows the company to potentially limit dilution if its stock performs well. For investors, the key takeaway is the company's strengthened cash position, which reduces near-term financial risk and supports ongoing clinical development.
RenovoRx's focus on advancing its TIGeR-PaC trial for locally advanced pancreatic cancer (LAPC) is of particular interest. LAPC is a challenging disease with limited treatment options and poor prognosis. The TIGeR-PaC trial's innovative approach using TAMP therapy could potentially offer a new paradigm in treatment if successful. TAMP, which stands for Trans-Arterial Micro-Perfusion, is a platform aiming to improve drug delivery to tumors and RenovoGem, the drug-device combination product, is at the forefront of this research.
From a medical research perspective, the second interim readout expected in late 2024 will be a critical milestone. Interim analyses in clinical trials are conducted to ensure patient safety, study integrity and to assess early indications of efficacy. Positive results could be transformative for the company and patients alike, potentially leading to accelerated approval pathways. However, it's important to note the high attrition rates in oncology drug development. The expansion into additional cancer indications suggests a strategic approach to maximize the TAMP platform's potential, but it also introduces more variables into the company's research trajectory.
RenovoRx's recent financing round is likely to influence its stock market performance, considering the extended cash runway and the progress in the TIGeR-PaC trial. The market for pancreatic cancer treatments is competitive, with a high unmet need and RenovoRx is positioning itself as a potential key player. The decision to expand the TAMP platform into other cancer indications demonstrates a long-term strategic vision, aiming to capture a larger share of the oncology market.
Investors typically monitor biopharmaceutical companies for their pipeline's progress and financial stability. RenovoRx's announcement addresses both aspects, which could positively impact investor sentiment. Nevertheless, the inherent risks of clinical trials and the regulatory landscape must be weighed. Market analysts will be closely watching the upcoming interim analysis, as it will provide valuable data on the company's prospects and may significantly influence the stock's valuation.
- Cash position now expected to fund current operating plan into 2026
- Financing provides cash runway to advance the ongoing pivotal Phase III TIGeR-PaC trial through the second interim readout and towards completion of the trial
- Financing also enables the expansion of RenovoRx’s TAMP™ (Trans-Arterial Micro-Perfusion) clinical development pipeline into additional cancer indications
The proceeds from this financing, in addition to RenovoRx’s previously announced private placement on January 29, 2024 for gross proceeds of approximately
Proceeds from the financing are also expected to enable the expansion of the TAMP clinical development pipeline into additional cancer indications.
The definite subscription agreements were executed based on the closing price of RenovoRx’s common stock on April 4, 2024, and the private placement is expected to close on April 11, 2024, subject to customary closing conditions. Newbridge Securities Corporation is acting as sole placement agent for the transaction.
Terms of the Private Placement
In connection with the private placement, the Company will issue 7,912,364 shares of common stock, five-year Series A Warrants to purchase an aggregate of up to 7,912,364 shares of common stock, and two-year Series B Warrants, to purchase an aggregate of up to 3,956,182 shares of common stock, with the Series A Warrants and Series B Warrants together constituting
The securities being sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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 RenovoRx, Inc.
RenovoRx is a clinical-stage biopharmaceutical company developing proprietary targeted combination therapies for high unmet medical need with a goal to improve therapeutic outcomes for cancer patients undergoing treatment. RenovoRx’s patented Trans-Arterial Micro-Perfusion (TAMP™) therapy platform is designed to ensure precise therapeutic delivery to directly target the tumor while potentially minimizing a therapy’s toxicities versus systemic intravenous therapy. RenovoRx’s novel and patented approach to targeted treatment offers the potential for increased safety, tolerance, and improved efficacy. Our Phase III lead product candidate, RenovoGem™, a novel oncology drug-device combination product, is being investigated under a
RenovoRx is committed to transforming the lives of patients by delivering innovative solutions to change the current paradigm of cancer care. RenovoGem is currently under investigation for TAMP therapeutic delivery of gemcitabine and has not been approved for commercial sale.
For more information, visit www.renovorx.com. Follow RenovoRx on Facebook, LinkedIn, and Twitter.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including but not limited to statements regarding (i) the anticipated closing and use of proceeds from the private placement described herein and (ii) our clinical trials and studies, including anticipated timing, statements regarding the potential of RenovoCath®, RenovoGem™ or TAMP™ or regarding our ongoing TIGeR-PaC Phase III clinical trial study in LAPC, and (iii) the potential for our product candidates to treat or provide clinically meaningful outcomes for certain medical conditions or diseases. Statements that are not purely historical are forward-looking statements. The forward-looking statements contained herein are based upon our current expectations and beliefs regarding future events, many of which, by their nature, are inherently uncertain, outside of our control and involve assumptions that may never materialize or may prove to be incorrect. These may include estimates, projections and statements relating to our research and development plans, clinical trials, therapy platform, business plans, financing plans, objectives and expected operating results, which are based on current expectations and assumptions that are subject to known and unknown risks and uncertainties that may cause actual results to differ materially and adversely from those expressed or implied by these forward-looking statements. These statements may be identified using words such as “will,” “may,” “expects,” “plans,” “aims,” “anticipates,” “believes,” “forecasts,” “estimates,” “intends,” and “potential,” or the negative of these terms or other comparable terminology regarding RenovoRx’s expectations strategy, plans or intentions, although not all forward-looking statements contain these words. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, that could cause actual events to differ materially from those projected or indicated by such statements, including, among other things: (i) circumstances which would adversely impact our ability to efficiently utilize the net proceeds of the private placement described herein; (ii) the timing of the initiation, progress and potential results (including the results of interim analyses) of our preclinical studies, clinical trials and our research programs; (iii) the possibility that interim results may not be predictive of the outcome of our clinical trials, which may not demonstrate sufficient safety and efficacy to support regulatory approval of our product candidate; (iv) that the applicable regulatory authorities may disagree with our interpretation of the data; research and clinical development plans and timelines, and the regulatory process for our product candidates; (v) future potential regulatory milestones for our product candidates, including those related to current and planned clinical studies; (vi) our ability to use and expand our therapy platform to build a pipeline of product candidates; (vii) our ability to advance product candidates into, and successfully complete, clinical trials; (viii) the timing or likelihood of regulatory filings and approvals; (ix) our estimates of the number of patients who suffer from the diseases we are targeting and the number of patients that may enroll in our clinical trials; (x) the commercialization potential of our product candidates, if approved; (xi) our ability and the potential to successfully manufacture and supply our product candidates for clinical trials and for commercial use, if approved; (xii) future strategic arrangements and/or collaborations and the potential benefits of such arrangements; (xiii) our estimates regarding expenses, future revenue, capital requirements and needs for additional financing and our ability to obtain additional capital; (xiv) the sufficiency of our existing cash and cash equivalents to fund our future operating expenses and capital expenditure requirements; (xv) our ability to retain the continued service of our key personnel and to identify, and hire and retain additional qualified personnel; (xvi) the implementation of our strategic plans for our business and product candidates; (xvii) the scope of protection we are able to establish and maintain for intellectual property rights, including our therapy platform, product candidates and research programs; (xviii) our ability to contract with third-party suppliers and manufacturers and their ability to perform adequately; (xix) the pricing, coverage and reimbursement of our product candidates, if approved; and (xx) developments relating to our competitors and our industry, including competing product candidates and therapies. Information regarding the foregoing and additional risks may be found in the section entitled “Risk Factors” in documents that we file from time to time with the Securities and Exchange Commission.
Forward-looking statements included herein are made as of the date hereof, and RenovoRx does not undertake any obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240408031443/en/
KCSA Strategic Communications
Valter Pinto, Managing Director
T:212-896-1254
renovorx@kcsa.com
Source: RenovoRx, Inc.
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