Rein Therapeutics Enters into Agreements for up to $21 Million in Flexible Financing

Rhea-AI Summary

Rein Therapeutics (NASDAQ: RNTX) has secured up to $21 million in flexible financing through two strategic agreements with Yorkville Advisors Global, LP. The financing package includes a $6 million pre-paid advance agreement with an initial $1 million funded at signing, and a $15 million standby equity purchase agreement (SEPA) available over 36 months.

The funds will support the company's RENEW Phase 2 trial of LTI-03 for idiopathic pulmonary fibrosis (IPF) treatment, pipeline development, and general corporate purposes. The pre-paid advance facility allows draws over 12 months with a 5% discount and stock-based repayment, while the SEPA provides optional stock sales pending SEC registration.

Positive

• Access to up to $21 million in flexible financing to support clinical trials and operations
• Initial $1 million already funded at signing
• 36-month duration for the $15 million SEPA provides long-term funding flexibility
• Company maintains discretion over SEPA utilization with no obligation to use it

Negative

• Pre-paid advances will be repaid in common stock at a discount, potentially diluting shareholders
• SEPA implementation requires SEC registration approval
• 5% discount on pre-paid advances increases effective cost of capital

Insights

Biotechnology Investment Analyst

Rein secures $21M flexible financing to advance IPF trial; dilutive structure provides runway but at potential shareholder cost.

Rein Therapeutics has secured up to $21 million in strategic financing through two agreements with Yorkville Advisors, creating an important capital runway for its clinical development programs. The financing structure includes a $6 million pre-paid advance facility and a $15 million Standby Equity Purchase Agreement (SEPA), giving the company significant flexibility in capital deployment.

The pre-paid advance facility, starting with an initial $1 million tranche, comes with a 5% discount and interest-bearing terms that allow for repayment in discounted common stock. Meanwhile, the $15 million SEPA provides a 36-month window for discretionary equity sales, contingent on SEC registration.

This financing package is strategically timed to support Rein's RENEW Phase 2 trial for LTI-03 in idiopathic pulmonary fibrosis (IPF), a serious orphan indication with substantial unmet needs. While the capital infusion extends the company's operational runway and reduces near-term financing pressure, investors should note the potentially dilutive nature of both agreements, particularly the equity component that allows stock issuance at discounted prices.

The structure suggests Rein is prioritizing financial flexibility and runway extension over immediate large-scale dilution, indicating management's confidence in upcoming clinical milestones potentially improving future financing terms. However, the discount mechanics in both agreements suggest the company may have limited financing alternatives, which is not uncommon for clinical-stage biotechs in the current market environment.

Biotech Clinical Development Expert

$21M financing secures Rein's Phase 2 IPF trial advancement, providing crucial clinical pathway stability in competitive pulmonary fibrosis space.

This $21 million financing package represents a critical operational milestone for Rein Therapeutics' clinical development trajectory. The capital infusion directly supports the company's RENEW Phase 2 trial evaluating LTI-03 for idiopathic pulmonary fibrosis (IPF), a progressive and life-threatening condition characterized by scarring of lung tissue that severely impairs respiratory function.

The financing structure provides Rein with both immediate capital via the $6 million pre-paid advance and longer-term flexibility through the $15 million SEPA, creating a 36-month runway that aligns with typical Phase 2 clinical development timelines for complex indications like IPF. This extended capital access is particularly valuable in IPF trials, which face challenges including patient recruitment difficulties and complex endpoint assessments.

From a clinical perspective, securing dedicated funding for the RENEW trial significantly reduces execution risk for this program. IPF represents a substantial market opportunity with limited effective therapies - current standards of care primarily slow disease progression rather than reversing fibrosis. LTI-03, as a first-in-class candidate within Rein's novel pipeline for orphan pulmonary and fibrosis indications, potentially addresses core disease mechanisms rather than just symptoms.

The financing also enables concurrent pipeline advancement beyond the lead program, suggesting confidence in the company's broader platform technology. For a clinical-stage biotech targeting orphan indications, maintaining multiple advancing programs significantly enhances overall portfolio value and risk distribution across development stages.

-   Financing designed to support Phase 2 IPF trial and pipeline advancement

AUSTIN, Texas, July 30, 2025 (GLOBE NEWSWIRE) -- Rein Therapeutics ("Rein") (NASDAQ: RNTX), a biopharmaceutical company advancing a novel pipeline of first-in-class medicines to address significant unmet medical needs in orphan pulmonary and fibrosis indications, today announced that it has entered into two strategic financing agreements with an affiliate of Yorkville Advisors Global, LP, providing the potential for access to up to $21 million in capital.

The financing includes:

• A $6 million pre-paid advance agreement, with an initial $1 million advance funded at signing.
• A $15 million standby equity purchase agreement (SEPA), which Rein may use at its discretion over 36 months, subject to an effective registration statement.

Rein intends to use the proceeds from these facilities to support its RENEW Phase 2 trial of its lead asset – LTI-03 – for the treatment of idiopathic pulmonary fibrosis (IPF), for the research and development of other product candidates, and for working capital and other general corporate purposes.

Key Terms

• Pre-paid Advance Facility: Up to $6 million may be drawn over the next twelve months in mutually agreed tranches. Each pre-paid advance will be purchased at a 5% discount, bears interest, and if and when requested by Yorkville, will be repaid in common stock of the company at a discounted price.  
• SEPA: Rein has the option, but not the obligation, to sell to Yorkville up to $15 million of common stock over 36 months. Sales under the SEPA require a registration statement to be declared effective by the SEC.

A more detailed description of the agreements will be filed in Rein’s Form 8-K with the SEC.

Legal Notice

The shares issuable under the pre-paid advance agreement are being offered by Rein pursuant to a shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 16, 2025 (File No. 333-287342), as declared effective by the SEC on May 22, 2025. A final prospectus supplement containing additional information relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov.

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

About Rein Therapeutics

Rein Therapeutics is a clinical-stage biopharmaceutical company advancing a novel pipeline of first-in-class therapies to address significant unmet medical needs in orphan pulmonary and fibrosis indications. Rein's lead product candidate, LTI-03, is a novel, synthetic peptide with a dual mechanism targeting alveolar epithelial cell survival as well as inhibition of profibrotic signaling. LTI-03 has received Orphan Drug Designation in the U.S. and is in clinical development. Rein's second product candidate, LTI-01, is a proenzyme that has completed Phase 1b and Phase 2a clinical trials for the treatment of loculated pleural effusions. LTI-01 has received Orphan Drug Designation in the U.S. and E.U. and Fast Track Designation in the U.S. 

 Forward-Looking Statements

This press release may contain forward-looking statements of Rein Therapeutics, Inc. ("Rein", the "Company", "we", "our" or "us") within the meaning of the Private Securities Litigation Reform Act of 1995, including statements with respect to the agreements with Yorkville, including the potential sale of shares of common stock to Yorkville and the Company’s ability to receive future pre-paid advances, and future expectations, plans and prospects for the Company. We use words such as "anticipate," "believe," "estimate," "expect," "hope," "intend," "may," "plan," "predict," "project," "target," "potential," "would," "can," "could," "should," "continue," and other words and terms of similar meaning to help identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including risks and uncertainties related to: the ability of the Company to sell shares of common stock, receive future pre-paid advances and funding under the agreements entered into Yorkville and generate the proceeds expected from these facilities and needed to fund the Company; uncertainties with respect to the Company’s ability to repay any advances if required; uncertainties with respect to the Company’s capital strategy; uncertainty with respect to regulatory matters with respect to the Company’s RENEW Phase 2 trial and LTI-03, including uncertainty as to if and when the clinical hold may be resolved; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors, including risks inherent in pharmaceutical research and development, such as adverse results in the Company's drug discovery, preclinical and clinical development activities; the risk that the results of preclinical studies and early clinical trials may not be replicated in later clinical trials, including in the RENEW Phase 2 trial, or that partial results of a trial will be indicative of the full results of the trial; the Company's ability to enroll patients in its clinical trials; and the risk that any of its clinical trials may not commence, continue or be completed on time, or at all; decisions made by the U.S. Food and Drug Administration and other regulatory authorities, investigational review boards at clinical trial sites and publication review bodies with respect to our development candidates; as well as the risks and uncertainties discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, which is on file with the United States Securities and Exchange Commission (the "SEC") and in subsequent filings that the Company files with the SEC. These forward-looking statements should not be relied upon as representing the Company's view as of any date after the date of this press release, and we expressly disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Rein Investor Relations & Media Contact:

Investor Relations
IR@ReinTx.com

FAQ

How much financing did Rein Therapeutics (RNTX) secure in July 2025?

Rein Therapeutics secured access to up to $21 million in flexible financing, consisting of a $6 million pre-paid advance agreement and a $15 million standby equity purchase agreement.

What will Rein Therapeutics use the $21 million financing for?

The funds will support the RENEW Phase 2 trial of LTI-03 for idiopathic pulmonary fibrosis (IPF), research and development of other product candidates, and working capital and general corporate purposes.

What are the key terms of RNTX's pre-paid advance facility?

The pre-paid advance facility allows up to $6 million to be drawn over 12 months, with each advance purchased at a 5% discount and repayable in common stock at a discounted price.

How long can Rein Therapeutics access the SEPA funding?

The $15 million SEPA is available for Rein to use at its discretion over a period of 36 months, subject to an effective SEC registration statement.

Who is providing the financing to Rein Therapeutics?

The financing agreements are with an affiliate of Yorkville Advisors Global, LP.