© Reuters.
DOYLESTOWN, Pa. – Aprea Therapeutics, Inc. (NASDAQ:), a biopharmaceutical company specializing in precision oncology, announced today that it has entered into a securities purchase agreement with healthcare-focused institutional investors and insiders to raise up to $34 million. The financing includes an upfront amount of $16 million with the potential for an additional $18 million from warrant exercises.
The fundraising effort, led by Sphera Healthcare, features contributions from various new and existing investors such as Nantahala Capital, DAFNA Capital Management, Exome Asset Management, and Stonepine Capital Management. According to Dr. Oren Gilad, President and CEO of Aprea, this capital will bolster the company’s leadership in Synthetic Lethality (SL) and DNA Damage and Response (DDR) fields.
The proceeds are earmarked for advancing the clinical development of Aprea’s Phase 1 ACESOT-1051 trial, which studies an oral WEE1 inhibitor for certain cancers, and the ongoing Phase 1/2a trial (AR-276-01) for the ATR inhibitor ATRN-119.
In the transaction, Aprea will issue over 2 million shares of common stock or pre-funded warrants, alongside warrants to purchase additional shares, at a purchase price of $7.29 per share and accompanying warrant. The warrants are divided into two tranches, with different exercise prices and expiration conditions based on the achievement of certain clinical milestones.
The private placement is set to close around March 13, 2024, subject to customary closing conditions. Aprea plans to use the net proceeds for general corporate purposes and to fund the clinical development of APR-1051, which has recently received IND clearance from the FDA. The company anticipates that the aggregate net proceeds will sustain its operations into 2026.
This report is based on a press release statement.
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