SAN DIEGO, Sept. 1, 2020 /PRNewswire/ -- Kintara
Therapeutics, Inc. ("Kintara" or the "Company") (Nasdaq: KTRA)
announced today the final closing of its previously announced
private placement of Series C Convertible Preferred Stock (the
"Preferred Stock") to accredited investors. Including the
previously announced closings, Kintara received aggregate gross
proceeds of approximately $25 million
before deducting placement agent fees and other offering expenses
payable by the Company.
The capital raised from existing and new investors is expected
to facilitate Kintara's strategic initiative to become a recognized
leader in developing therapies for rare and difficult to treat
oncology indications. The Company intends to use the net proceeds
from the offering primarily to fund the previously announced
registration study for VAL-083 in newly-diagnosed and recurrent
glioblastoma multiforme (GBM) and the 15-patient REM-001
confirmatory lead-in study that is designed to seamlessly
transition into a Phase 3 pivotal study for cutaneous metastatic
breast cancer (CMBC) as well as for working capital. As previously
disclosed, the VAL-083 GBM registration study will be executed
through the Company's partnership with Global Coalition for
Adaptive Research (GCAR) through the Glioblastoma Adaptive Global
Innovative Learning Environment (GBM AGILE) Study, the world's
first global adaptive clinical trial platform for GBM with
regulatory support as a registrational study.
"This is a transformational event for the Company as we believe
it validates the combined portfolio of assets from the recently
completed acquisition of Adgero," commented Saiid Zarrabian, President and Chief Executive
Officer of Kintara. "Furthermore, and perhaps most importantly, we
believe this financing provides sufficient capital to achieve
meaningful value generating milestones for multiple clinical stage
programs over the next 12-24 months. We look forward to enrolling
the first patient into the VAL-083 arm of the GBM AGILE study in
the fourth quarter of 2020 and plan to initiate the 15-patient
REM-001 confirmatory study in the second quarter of 2021, with
planned data results from this study as early as the fourth quarter
of 2021."
The private placement offering consisted of the issuance of an
aggregate of 25,028 shares of the Company's Series C Convertible
Preferred Stock (the "Preferred Stock") at a purchase price of
$1,000 per share priced at-the-market
under the rules of the Nasdaq Stock Market. The Preferred
Stock was issued in three separate series, 19,587 shares of
Series C-1 Preferred Stock, which are convertible into 16,885,345
shares of the Company's common stock at a conversion price of
$1.16 per share, 2,185 shares of
Series C-2 Preferred Stock, which are convertible into 1,799,835
shares of the Company's common stock at a conversion price of
$1.214 per share and 3,256 shares of
Series C-3 Preferred Stock, which are convertible into 2,831,304
shares of the Company's common stock at a conversion price of
$1.15 per share. The Preferred
Stock also accrues dividends as previously disclosed.
"The strong investor response to this private placement is
confirmation of the attractiveness of Kintara's unique corporate
profile and diversified late-stage oncology product pipeline
targeting rare, unmet medical needs," commented Adam Stern, Chief Executive Officer of
SternAegis Ventures. "With the addition of new capital, the Company
is now in a strong position to expedite the advancement of two
potentially game-changing therapeutic candidates into late-stage
clinical trials."
SternAegis Ventures acted as the exclusive placement agent for
the private placement.
The shares of Preferred Stock described above were offered in a
private placement pursuant to an applicable exemption from the
registration requirements of the Securities Act of 1933, as amended
(the "Act"), and, along with the common shares issuable upon their
conversion or payable as dividends pursuant to the Preferred Stock,
have not been registered under the Act, and may not be offered or
sold in the United States absent
registration with the SEC or an applicable exemption from such
registration requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the
Securities Act of 1933, as amended.
About Kintara
Located in San Diego,
California, Kintara is dedicated to the development of novel
cancer therapies for patients with unmet medical needs.
Kintara is developing two late-stage, Phase 3-ready therapeutics
for clear unmet medical needs with reduced risk development
programs. The two programs are VAL-083 for GBM and REM-001
for CMBC.
VAL-083 is a "first-in-class", small-molecule
chemotherapeutic with a novel mechanism of action that has
demonstrated clinical activity against a range of cancers,
including central nervous system, ovarian and other solid tumors
(e.g. NSCLC, bladder cancer, head and neck) in U.S. clinical trials
sponsored by the National Cancer Institute (NCI). Based on
Kintara's internal research programs and these
prior NCI-sponsored clinical studies, Kintara is
currently conducting clinical trials to support the development and
commercialization of VAL-083 in GBM.
Kintara is also advancing its proprietary late stage
photodynamic therapy (PDT) platform that holds promise as a
localized cutaneous or visceral tumor treatment as well as in other
potential indications. REM-001 therapy, has been previously
studied in four Phase 2/3 clinical trials in patients with CMBC,
who had previously received chemotherapy and/or failed radiation
therapy. With clinical efficacy to date of 80% complete responses
of CMBC evaluable lesions and with an existing robust safety
database of approximately 1,100 patients across multiple
indications, Kintara is advancing the REM-001 CMBC
program to late stage pivotal testing.
About SternAegis Ventures
SternAegis Ventures is the management team within Aegis Capital
Corp. that is responsible for venture capital and private equity
financing. www.sternaegis.com
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
based upon Kintara's current expectations. Forward-looking
statements are identified by terminology such as "may," "should,"
"expects," "plans," "anticipates," "could," "intends," "target,"
"projects," "contemplates," "believes," "estimates," "predicts,"
"potential" or "continue" or the negative of these terms or other
similar words. These statements are only predictions. Kintara has
based these forward-looking statements largely on its then-current
expectations and projections about future events, as well as the
beliefs and assumptions of management. Forward-looking statements
are subject to a number of risks and uncertainties, many of which
involve factors or circumstances that are beyond Kintara's control,
and actual results could differ materially from those stated or
implied in forward-looking statements due to a number of factors,
including but not limited to: (i) risks associated with the impact
of the COVID-19 pandemic, (ii) risks and uncertainties relating to
Kintara's ability to develop, market and sell products based on its
technology; the expected benefits and efficacy of Kintara's
products and technology; the availability of substantial additional
funding for Kintara to continue its operations and to conduct
research and development, clinical studies and future product
commercialization; and, Kintara's business, research, product
development, regulatory approval, marketing and distribution plans
and strategies, (iii) whether the recently closed acquisition of
Adgero Biopharmaceuticals Holdings, Inc. will be successful, and
(iv) those risks detailed in Kintara's most recent Annual Report on
Form 10-K and subsequent reports filed with the SEC, as
well as other documents that may be filed by Kintara from time to
time with the SEC. Accordingly, you should not rely upon
forward-looking statements as predictions of future events. Kintara
cannot assure you that the events and circumstances reflected in
the forward-looking statements will be achieved or occur, and
actual results could differ materially from those projected in the
forward-looking statements. The forward-looking statements made in
this communication relate only to events as of the date on which
the statements are made. Except as required by applicable law or
regulation, Kintara undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which the statement is made or to reflect the
occurrence of unanticipated events. Investors should not assume
that any lack of update to a previously issued "forward-looking
statement" constitutes a reaffirmation of that statement.
Contact Information
Investors:
CORE IR
516-222-2560
ir@coreir.com
Media:
Jules Abraham
Head of Public Relations
CORE IR
917-885-7378
julesa@coreir.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/kintara-therapeutics-completes-final-closing-of-previously-announced-private-placement-for-an-aggregate-of-25-million-301121610.html
SOURCE Kintara Therapeutics