Galectin Therapeutics Announces Conversion of $105.8 Million in Debt to Equity, Significantly Strengthening Balance Sheet
Rhea-AI Summary
Galectin Therapeutics (NASDAQ: GALT) announced that Chairman and largest stockholder Richard E. Uihlein has converted all outstanding principal and accrued interest under five line-of-credit facilities into common stock, effective July 31, 2026. The transaction eliminates approximately $105.8 million in total debt obligations, consisting of $91.0 million in principal and about $14.8 million in accrued interest, in exchange for 34,376,167 newly issued shares.
The notes were converted at their individual conversion prices, with a blended average of about $3.07 per share, subject to a $3.00 floor. Following the conversion, Galectin had 100,849,644 shares outstanding. A separate December 19, 2025 supplemental credit facility of up to $10 million remains undrawn and available. The shares were issued under a Section 3(a)(9) Securities Act exemption, and Galectin is obligated to register the resale of the new shares within 180 days.
Positive
- $105.8 million in total debt eliminated through note conversion
- Debt comprised of $91.0 million principal and $14.8 million accrued interest
- Issuance of 34,376,167 shares converts debt to equity, reducing leverage
- Post-transaction share count of 100,849,644 clarifies equity base
- Undrawn $10 million December 2025 credit facility remains available for financing
- Blended conversion price of about $3.07 per share indicates insider support
Negative
- Issuance of 34,376,167 new shares dilutes existing shareholders’ ownership
- Company must register resale of new shares within 180 days, enabling future share sales
News Explained
The conversion was effective
Market reaction after debt-to-equity conversion: GALT -9.08%
Following this news, GALT has declined 9.08%, reflecting a notable negative market reaction. Our momentum scanner has triggered 11 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $2.75.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 23 | FDA meeting update | Positive | +11.4% | FDA feedback supported a potential Phase 3 pathway for belapectin |
| May 27 | Clinical data presentation | Positive | -3.2% | EASL analyses reported favorable disease progression and biomarker findings |
| May 15 | Q1 earnings report | Positive | -7.7% | Improved net loss and trial progress accompanied the quarterly financial update |
| May 11 | Phase 2b trial publication | Positive | +5.2% | Published NAVIGATE results showed fewer new esophageal varices |
| Mar 31 | 2025 earnings report | Positive | +8.6% | Lower R&D expenses and net loss improved reported financial results |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent positive developments produced mixed reactions, with both gains and declines following favorable company announcements.
Key Terms
convertible promissory notes financial
section 3(a)(9) regulatory
registration rights regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Chairman Richard E. Uihlein converts outstanding notes under five line of credit facilities into common stock
Transaction eliminates approximately
NORCROSS, Ga., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Galectin Therapeutics Inc. (NASDAQ: GALT) ("Galectin" or the "Company"), a clinical-stage biopharmaceutical company developing therapies that target galectin-3 for the treatment of liver fibrosis and portal hypertension associated with MASH cirrhosis, today announced that Richard E. Uihlein, the Company’s Chairman of the Board and largest stockholder, has converted all outstanding principal and accrued interest under five of the Company’s line of credit facilities into shares of the Company’s common stock, effective July 31, 2026.
The conversion eliminated approximately
“This conversion represents a transformative event for Galectin’s balance sheet and financial position,” said Joel Lewis, Chief Executive Officer of Galectin Therapeutics. “By eliminating over
A sixth facility from the Supplemental Line of Credit Agreement dated December 19, 2025, providing for up to
Transaction Highlights:
- Elimination of approximately
$105.8 million in total debt, consisting of$91.0 million in principal and approximately$14.8 million in accrued interest - Issuance of 34,376,167 shares of common stock to Mr. Uihlein upon conversion
- Conversion covers all notes under five of six credit facilities; the December 2025 facility remains undrawn and available
- Significant strengthening of the Company’s balance sheet
- Demonstrates continued strong support from the Company’s Chairman and largest stockholder
The conversion was effected pursuant to pre-existing conversion rights under convertible promissory notes issued to Mr. Uihlein in connection with the Company’s Line of Credit Letter Agreement dated July 25, 2022, and the Supplemental Line of Credit Agreements dated March 29, 2024, November 14, 2024, March 31, 2025, and July 8, 2025. Each note was converted at its specified conversion price (equal to the closing price of the common stock on the date of the note, subject to a
Following the conversion, the Company had 100,849,644 shares of common stock outstanding as of July 31, 2026.
The shares were issued in reliance upon the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended. The Company is obligated to register the resale of the shares within 180 days of the conversion date pursuant to the registration rights provisions in the line of credit agreements.
About Galectin Therapeutics
Galectin Therapeutics is dedicated to developing novel therapies to improve the lives of patients with chronic liver disease and cancer. Galectin’s lead drug belapectin is a carbohydrate-based drug that inhibits the galectin-3 protein, which is directly involved in multiple inflammatory, fibrotic, and malignant diseases, for which belapectin has Fast Track designation by the U.S. Food and Drug Administration. The lead development program is in metabolic dysfunction-associated steatohepatitis (MASH) with cirrhosis and portal hypertension, the most advanced form of MASH-related fibrosis. Liver cirrhosis is one of the most pressing medical needs and a significant drug development opportunity. Additional development programs are in treatment of combination immunotherapy for advanced head and neck cancers and other malignancies. Advancement of these additional clinical programs is largely dependent on finding a suitable partner. Galectin seeks to leverage extensive scientific and development expertise as well as established relationships with external sources to achieve cost-effective and efficient development. Additional information is available at www.galectintherapeutics.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or future financial performance, and use words such as “may,” “estimate,” “could,” “expect”, “look forward”, “believe”, “hope” and others. They are based on management’s current expectations and are subject to factors and uncertainties that could cause actual results to differ materially from those described in the statements. These statements include those regarding the anticipated benefits from the debt conversion, the Company’s plans to register the resale of shares issued upon conversion, and the Company’s ability to advance its clinical programs. Factors that could cause actual performance to differ materially from those discussed in the forward-looking statements include, among others, that Galectin may not be successful in developing effective treatments and/or obtaining the requisite approvals for the use of belapectin or any of its other drugs in development; the Company may not be successful in scaling up manufacturing and meeting requirements related to chemistry, manufacturing and control matters; the Company’s current clinical trial and any future clinical studies may not produce positive results in a timely fashion, if at all, and could require larger and longer trials, which would be time consuming and costly; plans regarding development, approval and marketing of any of Galectin’s drugs are subject to change at any time based on the changing needs of the Company as determined by management and regulatory agencies; regardless of the results of any of its development programs, Galectin may be unsuccessful in developing partnerships with other companies or raising additional capital that would allow it to further develop and/or fund any studies or trials. Galectin has incurred operating losses since inception, and its ability to successfully develop and market drugs may be impacted by its ability to manage costs and finance continuing operations. For a discussion of additional factors impacting Galectin’s business, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings with the SEC. You should not place undue reliance on forward-looking statements. Although subsequent events may cause its views to change, management disclaims any obligation to update forward-looking statements.
Company Contact:
Galectin Therapeutics Inc.
Jack Callicutt, Chief Financial Officer
(678) 620-3186
ir@galectintherapeutics.com
Investors Relations Contact:
Kevin Gardner
kgardner@lifesciadvisors.com
Galectin Therapeutics and its associated logo is a registered trademark of Galectin Therapeutics Inc. Belapectin is the USAN assigned name for Galectin Therapeutics’ galectin-3 inhibitor belapectin.
