Actuate Therapeutics Prices $11 Million Stock-and-Warrant Offering

Actuate Therapeutics priced an underwritten stock-and-warrant offering expected to raise about $11 million, giving the clinical-stage cancer drug developer financing for working capital and general corporate purposes if the sale closes.

The offering covers 30,985,900 common shares and warrants to purchase up to 15,492,950 shares. Investors must buy the securities as a package of two shares and one warrant for $0.71, although the shares and warrants will be issued separately. The expected gross proceeds exclude underwriting discounts, commissions and other expenses.

Each warrant allows its holder to buy a share for $0.45. The warrants become exercisable upon issuance and expire five years later. Full cash exercise could provide about $7 million in additional proceeds, but exercise is not assured.

Newbridge Securities Corporation is the sole book-running manager. It has a 45-day option to purchase up to 4,647,885 more shares and warrants to buy up to 2,323,942 shares.

Actuate expects the offering to close Oct. 28, subject to customary conditions. The company is developing treatments for difficult-to-treat cancers, and its lead investigational drug is elraglusib, a GSK-3β inhibitor.