HAMILTON, Bermuda - Altamira Therapeutics Ltd. (NASDAQ:CYTO), a biopharmaceutical company specializing in RNA delivery technology, has announced a public offering of common shares and warrants with an expected aggregate gross proceeds of approximately $4 million, before deducting placement agent fees and other offering expenses. The offering, priced at $0.72 per share or pre-funded warrant, includes Series A-1 and Series A-2 common warrants, both exercisable at $0.72 per share.
The Series A-1 warrants are immediately exercisable upon issuance and will expire 18 months post-issuance or 60 days after the company announces positive biodistribution data for its nanoparticles AM-401 or AM-411, whichever comes first. The Series A-2 warrants will also be immediately exercisable and will expire five years post-issuance or six months following the announcement of development and commercialization agreements for AM-401 or AM-411 that include the U.S. or European Union, whichever occurs first.
The closing of the offering is anticipated to occur around September 19, 2024, subject to customary closing conditions. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering.
In conjunction with the offering, Altamira has agreed to amend certain existing warrants issued in July 2023, reducing the exercise price to $0.72 per common share and extending the expiration to five years following the close of the current offering.
The net proceeds from this offering are intended for working capital and general corporate purposes. No guarantee can be made that any of the warrants will be exercised, potentially raising an additional $8 million if all warrants are exercised in full for cash.
Altamira Therapeutics is known for its proprietary OligoPhore™ and SemaPhore™ platforms, which facilitate efficient RNA delivery to tissues beyond the liver. Its leading siRNA programs, AM-401 for cancer and AM-411 for rheumatoid arthritis, are in preclinical development.
The securities described are being offered pursuant to a registration statement declared effective by the SEC on September 17, 2024. Prospective investors can obtain copies of the final prospectus, when available, from the SEC's website or directly from H.C. Wainwright & Co.
This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties, including market conditions and the company's financial position. These statements are not guarantees of future performance and are subject to change.
In other recent news, Altamira Therapeutics Ltd. has made several significant strides in its operations. The firm has extended its distribution agreement for the Bentrio nasal spray with Nuance Pharma to seven additional countries in East and South East Asia, following successful launches in Hong Kong and Scandinavia. Bentrio, a drug-free nasal spray, provides protection against airborne allergens and has been well-received by medical professionals and consumers.
Furthermore, Altamira's Bentrio nasal spray has passed the World Anti-Doping Agency substance test, confirming its suitability for athletes. In the research domain, Altamira has reported advancements in cancer treatment using its novel SemaPhore™ nanoparticle technology, showing potential for solid tumor remission in animal models. The company also reported promising results from an animal study on the treatment of abdominal aortic aneurysm (AAA) using these nanoparticles.
In addition, Altamira's AM-125 nasal spray formulation of betahistine has shown potential in treating residual dizziness in patients with benign paroxysmal positional vertigo. The company has also achieved significant progress in the stability of RNA nanoparticles crucial for the handling and transport of RNA formulations. These are the recent developments at Altamira Therapeutics.
InvestingPro Insights
Amidst its public offering of common shares and warrants, Altamira Therapeutics Ltd. (NASDAQ:CYTO) has shown some notable financial metrics and market performance that potential investors may want to consider. According to InvestingPro data, Altamira has a relatively low market capitalization of $2.11 million, indicative of its status as a small-cap company, which often carries a higher risk but also the potential for significant growth.
InvestingPro Tips highlight that Altamira is trading at a low Price / Book multiple of 0.27 as of the last twelve months ending Q4 2023. This could suggest that the company's stock is currently undervalued relative to its book value, potentially offering an attractive entry point for value investors. Additionally, the company holds more cash than debt on its balance sheet, which can provide some financial flexibility and resilience in managing its operations and funding its research and development endeavors.
However, it's important to note the company's significant price volatility. The stock has taken a considerable hit, with a one-week price total return of -16.5%, and a one-year price total return of -85.98%, reflecting substantial investor caution and market uncertainty surrounding the company's prospects. Moreover, Altamira does not pay a dividend to shareholders, which could be a factor for those investors seeking regular income streams from their investments.
For investors interested in further analysis and tips, there are 15 additional InvestingPro Tips available that provide deeper insights into Altamira's financial health and stock performance. These can be accessed through the InvestingPro platform for those looking to make a more informed investment decision.
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