NEW YORK - Applied Therapeutics, Inc. (NASDAQ:APLT), a clinical-stage biopharmaceutical company, has secured $100 million through a private placement of equity, the company announced on Tuesday.
The New York-based firm, which is focused on developing treatments for diseases with high unmet medical need, stated that the financing included significant contributions from healthcare-dedicated institutional and mutual fund investors.
The private placement involved the sale of 12,285,714 common shares at $7.00 each and 2,000,000 pre-funded warrants at $6.999 per warrant. The transaction is anticipated to close on or about March 1, 2024, subject to customary closing conditions. The proceeds are expected to extend the company's cash runway into 2026.
Applied Therapeutics plans to allocate the net proceeds towards commercial activities for its lead drug candidate, govorestat (AT-007), and to advance other pipeline candidates. Additionally, the funds will support working capital and general corporate purposes.
The investment round saw participation from a mix of new and existing investors, including names such as Perceptive Advisors, Janus Henderson Investors, and Rock Springs Capital, among others. Leerink Partners, RBC (TSX:RY) Capital Markets, Baird, and UBS Investment Bank served as placement agents for the transaction.
The company has committed to filing a registration statement with the SEC for the resale of the shares and the shares underlying the pre-funded warrants issued in connection with the private placement.
Applied Therapeutics' current financial position was also disclosed, with cash and cash equivalents of $43.6 million as of February 23, 2024. The company's portfolio includes govorestat for the treatment of central nervous system rare metabolic diseases and AT-001 for Diabetic Cardiomyopathy, alongside other preclinical candidates.
The securities sold in the private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the U.S. absent registration or an exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities.
The information in this article is based on a press release statement from Applied Therapeutics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.