Lixte Biotechnology Holdings, Inc. has completed a $4.3 million registered direct offering with accredited investors, providing the clinical-stage pharmaceutical company with capital to advance its innovative cancer drug development programs. The offering involved the purchase and sale of approximately $4.3 million of Common Stock and pre-funded and investor warrants at a price of $4.09 per Common Unit, priced at the market under Nasdaq rules.
The transaction comprised 1,051,342 Common Units or Pre-Funded Units, each consisting of one share of Common Stock or one Pre-Funded Warrant and one Common Warrant exercisable at $3.96 per share. The Common Warrants are exercisable immediately and expire 60 months from issuance. Gross proceeds from the offering totaled approximately $4.3 million, with net proceeds allocated for general corporate purposes and working capital to support the company's ongoing operations and research initiatives.
This financing represents a significant development for Lixte Biotechnology as it continues to advance its clinical programs in cancer therapy. The company focuses on new targets for cancer drug development and is developing and commercializing cancer therapies with a novel approach. Lixte has demonstrated that its first-in-class lead clinical PP2A inhibitor, LB-100, is well-tolerated in cancer patients at doses associated with anti-cancer activity.
Based on extensive published preclinical data available at https://lixte.com, LB-100 has the potential to significantly enhance chemotherapies and immunotherapies and improve outcomes for patients with cancer. The company's lead compound represents part of a pioneering effort in an entirely new field of cancer biology called activation lethality, which is advancing a new treatment paradigm. Lixte's new approach is covered by a comprehensive patent portfolio, providing intellectual property protection for its innovative research.
Proof-of-concept clinical trials are currently in progress for Ovarian Clear Cell Carcinoma and Metastatic Colon Cancer, representing two significant areas of unmet medical need in oncology. The successful completion of this $4.3 million offering provides Lixte with the financial resources to continue these important clinical investigations and potentially accelerate the development timeline for its therapeutic candidates.
Spartan Capital Securities LLC served as exclusive placement agent for the offering, with Sichenzia Ross Ference Carmel LLP acting as counsel to the company and Kaufman & Canoles PC serving as counsel to the placement agent. Additional information about LIXTE can be found at https://lixte.com/, where investors and interested parties can access detailed information about the company's research programs and development pipeline.
The importance of this financing extends beyond the immediate capital infusion for Lixte Biotechnology. For the biotechnology industry, successful financings like this demonstrate continued investor confidence in innovative cancer research approaches despite challenging market conditions. For patients and healthcare providers, the advancement of Lixte's programs represents potential progress toward new treatment options for difficult-to-treat cancers.
Lixte's focus on PP2A inhibition represents a distinct approach in cancer therapeutics that differs from traditional chemotherapy and newer targeted therapies. The company's research into activation lethality could potentially open new avenues for cancer treatment if clinical trials continue to show promise. The $4.3 million in funding will support the company's efforts to generate additional clinical data and advance its programs toward potential regulatory submissions and commercialization.
