Monopar Therapeutics Inc. Announces Pricing of $40 Million Public Offering of Common Stock and Concurrent Private Placement of Pre-Funded Warrants

Rhea-AI Summary

Monopar Therapeutics (Nasdaq: MNPR) announced the pricing of a combined public offering and private placement totaling $40 million. The offering includes 798,655 shares of common stock at $23.79 per share and pre-funded warrants for 882,761 shares at $23.789 per warrant. The transaction, expected to close around December 23, 2024, features participation from notable investors including RA Capital Management, Janus Henderson Investors, Adage Capital Partners LP, and ADAR1 Capital Management. The company plans to use proceeds for general corporate purposes, including research and development, clinical trials, product manufacturing, and working capital.

Positive

• Secured significant $40 million in funding through combined offering
• Attracted participation from major institutional investors
• Pre-funded warrants priced nearly at par with common stock ($23.789 vs $23.79)
• Strengthens balance sheet for R&D and clinical trial activities

Negative

• Potential dilution for existing shareholders
• Additional shares and warrants will increase outstanding share count significantly

Insights

Financial Analyst

This $40 million capital raise represents a substantial financial injection for Monopar Therapeutics, with notable participation from prestigious institutional investors including RA Capital Management and Janus Henderson. The pricing at $23.79 per share and the structure combining common stock with pre-funded warrants shows sophisticated financial engineering to maximize capital raising efficiency while minimizing immediate dilution.

The involvement of high-caliber institutional investors validates Monopar's potential and provides strong backing for their clinical development pipeline. The pre-funded warrants structure, with a nominal exercise price of $0.001, essentially represents deferred equity and allows certain investors to avoid ownership threshold issues while providing immediate capital to the company.

For a company with a market cap of approximately $158 million, this raise represents about 25% of their current valuation. While dilutive, the capital infusion significantly strengthens their balance sheet and provides runway for their clinical programs. The timing of the offering, closing before year-end, suggests strategic planning to secure funding before potential market volatility in 2024.

Biotech Research Analyst

The successful capital raise demonstrates strong institutional confidence in Monopar's clinical pipeline and development strategy. The participation of sophisticated biotech investors like RA Capital and Adage Capital, known for their thorough due diligence, provides validation of the company's scientific approach and market potential.

The unspecified allocation of funds to "research and development expenditures, clinical trial expenditures, manufacture and supply of product" suggests multiple programs advancing simultaneously. This flexible funding structure allows Monopar to strategically allocate resources across their pipeline based on clinical progress and emerging opportunities.

WILMETTE, Ill., Dec. 20, 2024 (GLOBE NEWSWIRE) -- Monopar Therapeutics Inc. (Nasdaq: MNPR) (“Monopar” or the “Company”), a clinical-stage biotechnology company focused on developing innovative treatments for patients with unmet medical needs, today announced the pricing of an underwritten registered offering of 798,655 shares of its common stock at an offering price of $23.79 per share. In addition to the shares sold in the registered offering, Monopar announced the concurrent pricing of a private placement of pre-funded warrants to purchase 882,761 shares of common stock at a purchase price of $23.789 per pre-funded warrant, which represents the per share offering price for the common stock less the $0.001 per share exercise price for each pre-funded warrant. The gross proceeds to Monopar from the registered offering and private placement, before deducting the underwriting discounts and commissions and estimated offering expenses, are expected to be $40 million. The offering is expected to close on or about December 23, 2024, subject to customary closing conditions.

Monopar intends to use the net proceeds from the offering for general corporate purposes, which may include research and development expenditures, clinical trial expenditures, manufacture and supply of product, and working capital.

RA Capital Management, Janus Henderson Investors, Adage Capital Partners LP and ADAR1 Capital Management participated in the offering.

Piper Sandler & Co. is acting as the sole book-running manager for the offering.

The securities in the registered offering are being offered and sold pursuant to a "shelf" registration statement on Form S-3 (File No. 333-268935), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 21, 2022, and declared effective on January 4, 2023. A prospectus supplement and accompanying prospectus describing the terms of the registered offering will be filed with the SEC and will be available on its website at www.sec.gov.  Copies of the prospectus supplement and the accompanying prospectus relating to the registered offering, when available, may also be obtained by contacting Piper Sandler & Co.  by mail at Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, by telephone at (800) 747-3924 or by email at prospectus@psc.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Monopar Therapeutics Inc.

Monopar Therapeutics is a clinical-stage biotechnology company with late-stage ALXN-1840 for Wilson disease, and radiopharma programs including Phase 1-stage MNPR-101-Zr for imaging advanced cancers, and Phase 1a-stage MNPR-101-Lu and late preclinical-stage MNPR-101-Ac225 for the treatment of advanced cancers. For more information, visit: www.monopartx.com.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Examples of these forward-looking statements include statements concerning: statements regarding the completion of the offering, the satisfaction of customary closing conditions related to the offering and the anticipated use of proceeds therefrom. The forward-looking statements involve risks and uncertainties including, but not limited to: our ability to raise sufficient funds in order for us to support continued clinical, regulatory and commercial development of our programs and to make contractual future milestone payments, as well as our ability to further raise additional funds in the future to support any existing or future product candidate programs through completion of clinical trials, the approval processes and, if applicable, commercialization; uncertainties related to the regulatory discussions we intend to initiate related to ALXN-1840 and the outcome thereof; the rate of market acceptance and competitiveness in terms of pricing, efficacy and safety, of any products for which we receive marketing approval, and our ability to competitively market any such products as compared to larger pharmaceutical firms; and the significant general risks and uncertainties surrounding the research, development, regulatory approval, and commercialization of imaging agents and therapeutics. Actual results may differ materially from those expressed or implied by such forward-looking statements. Risks are described more fully in Monopar's filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Monopar undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made. Any forward-looking statements contained in this press release represent Monopar’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date.

CONTACT:  
Monopar Therapeutics Inc.
Investor Relations
Karthik Radhakrishnan  
Chief Financial Officer  
karthik@monopartx.com

FAQ

How much did Monopar Therapeutics (MNPR) raise in their December 2024 offering?

Monopar Therapeutics raised $40 million through a combined public offering of common stock and private placement of pre-funded warrants.

What is the pricing of MNPR's December 2024 common stock offering?

The common stock was priced at $23.79 per share for 798,655 shares.

Who are the major investors participating in MNPR's December 2024 offering?

Major investors include RA Capital Management, Janus Henderson Investors, Adage Capital Partners LP, and ADAR1 Capital Management.

How will MNPR use the proceeds from their December 2024 offering?

The proceeds will be used for general corporate purposes, including research and development, clinical trials, product manufacturing, and working capital.

What is the exercise price of MNPR's pre-funded warrants in the December 2024 offering?

The pre-funded warrants have an exercise price of $0.001 per share.