Today marks a significant ascent for Leap Therapeutics, Inc. (NASDAQ: LPTX), as its trajectory surges positively. Notably, LPTX shares have surged by 29.60% in the current session, reaching a valuation of $3.94. This notable upswing seems buoyed by the company’s announcement regarding a private placement.
Leap Therapeutics (LPTX) has announced its entry into a securities purchase agreement with a select group of institutional investors. Under the terms, the company will issue and vend an aggregate of 12,660,993 shares of its common stock at a unit price of $2.82. Additionally, LPTX will offer pre-funded warrants for the acquisition of 1,523,404 shares of Common Stock at a unit price of $2.819, exercisable upon the warrants’ activation, in a private placement.
Projections suggest that Leap Therapeutics anticipates gross proceeds of approximately $40 million from the private placement, before the deduction of any associated expenses. The financing endeavor is slated to conclude on April 15, 2024, contingent upon the fulfillment of customary closing prerequisites.
Participating in the private placement are a blend of new and existing investors, inclusive of notable entities such as Samsara BioCapital, Gilead Sciences, Inc., 683 Capital Partners, LP, Rock Springs Capital, and Laurion Capital Management. The transaction has been facilitated with the exclusive involvement of J.P. Morgan acting as the placement agent.
Leap Therapeutics aims to allocate the net proceeds from the financing towards the continued advancement of its primary monoclonal antibody program, DKN-01. This includes expanding the randomized controlled Part B of the DeFianCe Study in second-line colorectal cancer patients from 130 to 180 individuals.
Furthermore, the funds will support data maturation in the randomized controlled Part C of the DisTinGuish study among first-line gastric cancer patients. Combining the net proceeds from this financing with existing cash, cash equivalents, and marketable securities, Leap Therapeutics anticipates funding its operational and capital expenses through the second quarter of 2026.
