Alaunos Therapeutics Announces $2.0 Million Registered Direct Offering

Rhea-AI Summary

Alaunos Therapeutics (NASDAQ: TCRT) has announced a $2.0 million registered direct offering of 610,399 shares of common stock (or pre-funded warrants) at $3.36 per share. The net proceeds of approximately $1.9 million will be used to fund the company's obesity program and general corporate purposes. The offering is expected to close around June 24, 2025. Alaunos is a preclinical stage company focused on developing small molecule-based drugs for obesity and metabolic disorders, with their product candidate ALN1001 designed to offer advantages over current injectable GLP-1 receptor agonists by preserving lean muscle mass and not relying on hormonal manipulation.

Positive

• Company secures additional funding of $2.0 million through registered direct offering
• Development of novel obesity treatment approach that preserves lean muscle mass
• Differentiated product strategy from current GLP-1 receptor agonists in the market

Negative

• Small offering size of only $2.0 million may provide limited runway
• Company still in preclinical stage with no revenue-generating products
• Potential dilution for existing shareholders

Insights

Financial Analyst

Alaunos' $2M offering provides minimal runway extension for its obesity program while significantly diluting shareholders at a seemingly low valuation.

Alaunos Therapeutics has secured a modest $2 million in financing through a registered direct offering of 610,399 shares at $3.36 per share. This small capital raise will generate net proceeds of approximately $1.9 million after expenses, which the company intends to allocate toward its obesity program and general corporate purposes.

This financing transaction reveals several concerning elements. First, the offering size of just $2 million is extremely small for a public biotech company and suggests limited investor interest or access to capital. For context, early-stage biotech companies typically need tens of millions to fund meaningful clinical development.

Second, the pricing at $3.36 per share was based on the 5-day average closing price, indicating the company couldn't command a premium. This suggests the market views Alaunos' obesity program with skepticism, especially considering the intensely competitive landscape dominated by established players with approved GLP-1 receptor agonists.

The company appears to be pivoting toward obesity treatments after previously focusing elsewhere, as indicated by their description as a "preclinical stage obesity and metabolic health drug development company." Their approach aims to differentiate from GLP-1 receptor agonists by not relying on hormonal manipulation and potentially preserving lean muscle mass. However, being only at the preclinical stage in this highly competitive space puts them years behind market leaders.

With just $1.9 million in net proceeds, this financing provides minimal runway extension and likely signals additional dilutive financings ahead unless the company can demonstrate compelling data from its obesity program soon.

HOUSTON, June 23, 2025 (GLOBE NEWSWIRE) -- Alaunos Therapeutics, Inc. (Nasdaq: TCRT) (the “Company”) today announced that it has entered into a definitive agreement with certain investors (the “SPA”) for the purchase and sale of an aggregate of 610,399 shares of common stock (or pre-funded warrants in lieu thereof) at a purchase price of $3.36 per share (or pre-funded warrant in lieu thereof) in a registered direct offering (the “Offering”) on June 20, 2025 based on the 5-day average Nasdaq official closing price.

The aggregate gross proceeds to the Company of this offering are expected to be approximately $2.0 million, before deducting the offering expenses payable by the Company. The Company currently intends to use the net proceeds of approximately $1.9 million from the offering for its obesity program and general corporate purposes. The transaction is expected to close on or about June 24, 2025, subject to the satisfaction of customary closing conditions.

The registered direct offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-266841) previously filed by the Company and declared effective by the U.S. Securities and Exchange Commission (“SEC”) on September 7, 2022. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. 

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Copies of the prospectus supplement relating to the registered direct offering, together with the accompanying base prospectus will be filed by the Company and, upon filing, can be obtained at the SEC’s website at www.sec.gov. 

Cautionary Note Regarding Forward-Looking Information:

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is based on management’s current expectations and beliefs and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking information in this news release includes, but not limited to, statements about the gross proceeds to the Company from the offering and the anticipated closing of the offering.

With respect to the forward-looking information contained in this news release, the Company has made numerous assumptions. While the Company considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks and uncertainties facing our business is disclosed in our Annual Report on Form 10-K and other filings with the SEC on www.sec.gov. 

All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

About Alaunos Therapeutics, Inc.
Alaunos is a preclinical stage obesity and metabolic health drug development company that is aiming to develop a small molecule-based drug to treat obesity and other metabolic disorders that have a differentiated profile relative to currently marketed and in development oral and injectable products. We believe ALN1001 and related small molecule product candidates are distinct in that they do not rely on hormonal manipulation, which is common with many obesity treatments. We aim to develop an oral obesity compound that addresses many of the shortcomings of injectable GLP-1 receptor agonists including preserving lean muscle mass.

For additional information, view the company’s website at www.alaunos.com or contact Alaunos Therapeutics, Inc. at (346) 355-4099.

FAQ

What is the size and price of TCRT's registered direct offering?

Alaunos Therapeutics (TCRT) is offering 610,399 shares at $3.36 per share, raising approximately $2.0 million in gross proceeds.

How will Alaunos Therapeutics use the proceeds from the offering?

The company plans to use the net proceeds of approximately $1.9 million for its obesity program and general corporate purposes.

What makes Alaunos Therapeutics' obesity treatment approach different?

Their approach uses small molecules instead of hormonal manipulation and aims to preserve lean muscle mass, unlike current injectable GLP-1 receptor agonists.

When is TCRT's registered direct offering expected to close?

The offering is expected to close on or about June 24, 2025, subject to customary closing conditions.

What stage of development is Alaunos Therapeutics in?

Alaunos is currently in the preclinical stage, developing small molecule-based drugs for obesity and metabolic disorders.