Lantern Pharma (NASDAQ: LTRN), a clinical-stage AI-driven precision oncology company, has entered into a definitive agreement for a registered direct offering expected to generate approximately $4.4 million in gross proceeds. The company also announced plans to spin off its artificial intelligence platform, withZeta.ai, and related technologies into an independent business entity.
Under the terms of the offering, Lantern will sell 2,135,923 shares of common stock, or pre-funded warrants in lieu thereof, at a price of $2.06 per share. The transaction includes a concurrent private placement of unregistered warrants. The move provides the company with additional capital to advance its clinical pipeline and support the creation of a separate entity focused on its AI capabilities.
Lantern's AI platform, withZeta.ai, is described as a multi-agentic AI co-scientist platform that is now commercially available as a subscription-based research platform for the global biomedical and drug development community. This represents a new revenue stream for the company. By spinning off this platform into an independent business entity, Lantern aims to unlock value and allow the AI technology to operate with greater strategic focus.
Lantern's clinical pipeline includes LP-184 (acylfulvene), LP-284 (a TC-NER targeting compound in hematologic and solid tumors), and LP-300 (cisplatin/ethacraplatin analog), which is being evaluated in the HARMONIC Phase 2 trial in never-smoker patients with relapsed advanced lung adenocarcinoma following TKI treatment. LP-184 is also being developed for pediatric CNS cancers through Starlight Therapeutics, Lantern's wholly owned CNS-focused subsidiary.
The company operates an AI Center of Excellence in Bengaluru, India, and is headquartered in Dallas, Texas. The registered direct offering is expected to close promptly, subject to customary closing conditions.
For more information, visit the full press release at https://ibn.fm/6Dy4I.
