STOCK TITAN

TransCode Therapeutics, Inc. Announces $8 Million Private Placement

Rhea-AI Impact
(High)
Rhea-AI Sentiment
(Neutral)
Tags
private placement

TransCode Therapeutics (Nasdaq: RNAZ) has announced an $8 million private placement with institutional investors. The company will issue 21,220,160 shares of common stock along with Series C and Series D warrants. The combined purchase price is $0.377 per share, with warrants exercisable at $0.475. Series C warrants have a 5-year term while Series D warrants have a 2.5-year term. The Benchmark Company is acting as exclusive placement agent, with closing expected around November 29, 2024. The proceeds will be used for general corporate purposes and working capital.

TransCode Therapeutics (Nasdaq: RNAZ) ha annunciato un collocamento privato di 8 milioni di dollari con investitori istituzionali. L'azienda emetterà 21.220.160 azioni di azioni ordinarie insieme a warrant di Serie C e Serie D. Il prezzo di acquisto combinato è di 0,377 dollari per azione, con warrant esercitabili a 0,475. I warrant di Serie C hanno una durata di 5 anni, mentre i warrant di Serie D hanno una durata di 2,5 anni. The Benchmark Company funge da agente di collocamento esclusivo, con chiusura prevista intorno al 29 novembre 2024. I proventi saranno utilizzati per scopi aziendali generali e capitale circolante.

TransCode Therapeutics (Nasdaq: RNAZ) ha anunciado un colocación privada de 8 millones de dólares con inversores institucionales. La compañía emitirá 21.220.160 acciones de acciones ordinarias junto con warrants de Serie C y Serie D. El precio de compra combinado es de 0.377 dólares por acción, con warrants ejercitables a 0.475. Los warrants de Serie C tienen un plazo de 5 años, mientras que los warrants de Serie D tienen un plazo de 2.5 años. The Benchmark Company actúa como agente exclusivo de colocación, con cierre previsto para alrededor del 29 de noviembre de 2024. Los ingresos se utilizarán para fines corporativos generales y capital de trabajo.

TransCode Therapeutics (Nasdaq: RNAZ)가 800만 달러의 사모 배정을 발표했습니다. 회사는 21,220,160주의 보통주와 함께 C 시리즈 및 D 시리즈 워런트를 발행할 예정입니다. 결합 매입 가격은 주당 0.377달러이며, 워런트는 0.475달러에 행사할 수 있습니다. C 시리즈 워런트는 5년 동안 유효하며, D 시리즈 워런트는 2.5년 동안 유효합니다. The Benchmark Company가 독점 배정 에이전트 역할을 하며, 마감은 2024년 11월 29일 경으로 예상됩니다. 수익금은 일반 기업 용도 및 운영 자본에 사용됩니다.

TransCode Therapeutics (Nasdaq: RNAZ) a annoncé une placement privé de 8 millions de dollars avec des investisseurs institutionnels. La société émettra 21.220.160 actions d'actions ordinaires accompagnées de bons de souscription de Série C et de Série D. Le prix d'achat combiné est de 0,377 dollar par action, les bons pouvant être exercés à 0,475 dollar. Les bons de souscription de Série C ont une durée de 5 ans, tandis que ceux de Série D ont une durée de 2,5 ans. La société The Benchmark Company agit en tant qu'agent de placement exclusif, avec une clôture prévue autour du 29 novembre 2024. Les produits seront utilisés pour des fins d'entreprise générales et du fonds de roulement.

TransCode Therapeutics (Nasdaq: RNAZ) hat eine Privatplatzierung in Höhe von 8 Millionen Dollar mit institutionellen Investoren angekündigt. Das Unternehmen wird 21.220.160 Aktien von Stammaktien zusammen mit C-Serie und D-Serie Warrants ausgeben. Der kombinierte Kaufpreis beträgt 0,377 Dollar pro Aktie, wobei die Warrants zu 0,475 Dollar ausgeübt werden können. C-Serie Warrants haben eine Laufzeit von 5 Jahren, während D-Serie Warrants eine Laufzeit von 2,5 Jahren haben. The Benchmark Company fungiert als exklusiver Platzierungsagent, wobei der Abschluss voraussichtlich um den 29. November 2024 erfolgen wird. Die Erlöse werden für allgemeine Unternehmenszwecke und Betriebskapital verwendet.

Positive
  • Secured $8 million in new funding through private placement
  • Pricing at market under Nasdaq rules indicates investor confidence
Negative
  • Significant shareholder dilution with issuance of 21.2M new shares
  • Additional potential dilution from 42.4M warrants if exercised
  • Funds raised for working capital suggests cash flow concerns

Insights

This $8 million private placement is a significant development for TransCode Therapeutics, but comes with substantial dilution concerns. The deal involves issuing over 21.2 million shares and two series of warrants at $0.377 per unit, priced at-the-market. The warrant structure (Series C with 5-year term and Series D with 2.5-year term) at $0.475 exercise price creates potential for further dilution.

For a company with a market cap of about $7 million, this financing nearly doubles the potential share count. While the capital injection provides important working capital, the dilutive impact and warrant overhang could pressure the stock price. The 125% warrant premium offers minimal upside protection and the adjustable exercise price on future dilutive events adds uncertainty.

BOSTON, Nov. 27, 2024 (GLOBE NEWSWIRE) -- TransCode Therapeutics, Inc. (Nasdaq: RNAZ), the RNA Oncology Company™ committed to more effectively treating cancer using RNA therapeutics, today announced that it has entered into a securities purchase agreement with certain institutional investors. The aggregate gross cash proceeds are expected to be approximately $8 million before deducting fees to the placement agent and other offering expenses payable by the Company. The Company intends to use the net proceeds from the private placement for general corporate purposes and working capital.

In connection with the private placement, the Company is planning to issue an aggregate of 21,220,160 shares of common stock (or pre-funded warrants in lieu thereof), Series C warrants to purchase 21,220,160 shares of common stock and Series D warrants to purchase 21,220,160 shares of common stock. The combined purchase price for each share of common stock and accompanying Series C warrant and Series D warrant is $0.377 priced at-the-market under Nasdaq rules. The Series C warrants are exercisable upon stockholder approval, will have a term of 5 years and have an exercise price of $0.475 representing 125% of the unit price. The Series D warrants are exercisable upon stockholder approval, will have a term of 2.5 years and have an exercise price of $0.475 representing 125% of the unit price. The exercise price and number of shares of common stock issuable upon exercise of the warrants are subject to adjustment upon future dilutive issuances and stock splits, subject to a floor, as described in more detail in the Company’s Current Report on Form 8-K to be filed in connection with the private placement.

The closing of the private placement is expected to occur on or about November 29, 2024, subject to the satisfaction of certain customary closing conditions.

The Benchmark Company, LLC is acting as the exclusive placement agent for the private placement.
The securities described above are being sold in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the "Act"), and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. Pursuant to a registration rights agreement with the investor, the Company has agreed to file one or more registration statements with the Securities and Exchange Commission (the "SEC") covering the resale of the common stock sold in the private placement and the common stock issuable upon exercise of the pre-funded warrants and the common stock purchase warrants sold in the private placement.

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 TransCode Therapeutics

TransCode is a clinical-stage oncology company focused on treating metastatic disease. The Company is committed to defeating cancer through the intelligent design and effective delivery of RNA therapeutics based on its proprietary TTX nanoparticle platform. The Company’s lead therapeutic candidate, TTX-MC138, is focused on treating metastatic tumors which overexpress microRNA-10b, a unique, well-documented biomarker of metastasis. In addition, TransCode is developing a portfolio of other first-in-class RNA therapeutic candidates designed to overcome the challenges of RNA delivery and thus unlock therapeutic access to a variety of novel genetic targets that could be relevant to treating a variety of cancers.

Forward-Looking Statements

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These statements include, without limitation, statements related to our ability to close the private placement offering and the gross proceeds from the offering and the use of proceeds. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: market and other conditions, the impact of economic, competitive and other factors affecting the Company and its operations, and other factors detailed in reports filed by the Company with the Securities and Exchange Commission.

For more information, please contact:
TransCode Therapeutics, Inc.
Tania Montgomery-Hammon, VP of Business Development
tania.montgomery@transcodetherapeutics.com


FAQ

How much funding did TransCode Therapeutics (RNAZ) raise in its November 2024 private placement?

TransCode Therapeutics raised $8 million in gross proceeds through a private placement with institutional investors.

What is the purchase price per share for RNAZ's November 2024 private placement?

The combined purchase price is $0.377 per share, including accompanying Series C and Series D warrants.

How many shares and warrants will RNAZ issue in the November 2024 private placement?

RNAZ will issue 21,220,160 shares of common stock and two series of warrants totaling 42,440,320 potential additional shares.

What is the exercise price of the warrants in RNAZ's November 2024 private placement?

Both Series C and Series D warrants have an exercise price of $0.475, representing 125% of the unit price.

TransCode Therapeutics, Inc.

NASDAQ:RNAZ

RNAZ Rankings

RNAZ Latest News

RNAZ Stock Data

5.36M
696.20k
0.01%
1.99%
4.31%
Biotechnology
Pharmaceutical Preparations
Link
United States of America
BOSTON