Moleculin Biotech, Inc. (NASDAQ:MBRX), a biotechnology company with a current market capitalization of $13.42 million, announced Friday that it has entered into an At The Market Offering Agreement with Roth Capital Partners, LLC. Under the agreement, Moleculin Biotech may sell shares of its common stock, par value $0.001 per share, with an aggregate sales price of up to $6.5 million, from time to time through Roth Capital acting as sales agent or principal. According to InvestingPro data, the company's stock has declined 67.64% year-to-date, reflecting significant market challenges.
According to the company's statement, any sales of shares under this agreement will be made pursuant to Moleculin's effective shelf registration statement on Form S-3 (File No. 333-280064), which became effective July 1, 2024. The shares offered under this arrangement are included in the $200 million of securities that may be issued and sold by the company under the base prospectus.
The agreement allows Moleculin to sell shares through at-the-market offerings as defined by SEC Rule 415(a)(4) or through privately negotiated transactions. Roth Capital will receive a placement fee of 3.0% of the gross sales price of shares sold through the agreement. Moleculin has also agreed to reimburse Roth Capital for legal counsel fees up to $50,000, as well as periodic due diligence fees up to $5,000 per period, as outlined in the agreement. The company has also agreed to indemnify Roth Capital against certain liabilities.
The company stated that it intends to use the net proceeds from the sale of shares for working capital and general corporate purposes. Moleculin is not obligated to sell any shares under the agreement, and any sales will depend on market conditions and the company's capital needs. The agreement may be terminated by either party, and will end automatically once the $6.5 million aggregate sales amount is reached.
This information is based on a press release statement and details disclosed in a Form 8-K filing with the Securities and Exchange Commission.
In other recent news, Moleculin Biotech, Inc. announced the pricing of a public offering expected to raise approximately $5.9 million in gross proceeds. The offering includes shares of common stock and Series E warrants, with proceeds intended to advance the development of Annamycin and other drug portfolios. In a significant regulatory development, Moleculin received approval from Georgia's Regulation Agency for Medical and Pharmaceutical Activities for its pivotal MIRACLE trial, which is testing Annamycin in combination with cytarabine for acute myeloid leukemia. The trial is expanding globally with plans to add 16 clinical sites in Europe and the US by the end of August. Additionally, the FDA has agreed to Moleculin's proposal for a pediatric study of Annamycin, suggesting that efficacy data from adults could be extrapolated to children. Positive results were reported from a Phase 1B/2 trial of Annamycin for soft tissue sarcoma lung metastases, showing promising survival rates. However, Moleculin also received a Nasdaq non-compliance notice for not meeting the minimum stockholders' equity requirement, though the company has 45 days to submit a compliance plan. These recent developments highlight Moleculin's ongoing efforts in drug development and regulatory navigation.