CALGARY, Alberta - XORTX Therapeutics Inc. (NASDAQ: XRTX | TSXV: XRTX | Frankfurt: ANU), a pharmaceutical company specializing in the treatment of progressive kidney disease, announced today that it has received approval from the TSX Venture Exchange to amend the exercise price of over one million outstanding common share purchase warrants. The adjustment affects warrants issued through three separate private placements dating back to February 9, 2021.
The company detailed that 198,333 warrants from the February 2021 placement, originally priced at CAD $42.26 ($0.40 adjusted post-consolidations), will now have an amended exercise price of USD $5.00. Similarly, 270,211 warrants from an October 15, 2021 placement, and 555,555 warrants from an October 7, 2022 placement, both also see their exercise prices revised to USD $5.00, from their original prices of USD $42.93 and USD $10.98 respectively, adjusted for consolidations.
Additionally, XORTX introduced a new warrant acceleration provision, which allows the company to force the exercise of warrants if the volume weighted average price of its common shares on the TSX Venture Exchange exceeds USD $6.50 for ten consecutive trading days. Warrant holders will then have 30 calendar days from the notice date to exercise their warrants, after which the warrants will expire.
XORTX is currently advancing its clinical development products, including the lead XRx-008 program for Autosomal Dominant Polycystic Kidney Disease (ADPKD), the secondary XRx-101 program for acute kidney and other acute organ injuries associated with respiratory viral infections, and the pre-clinical stage XRx-225 program for Type 2 Diabetic Nephropathy. The company focuses on targeting aberrant purine metabolism and xanthine oxidase to reduce or inhibit uric acid production, aiming to improve the quality of life for patients with kidney disease.
This announcement is based on a press release statement and does not constitute an endorsement of the company's claims. No regulatory authority has approved or disapproved the information contained herein. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated.
InvestingPro Insights
XORTX Therapeutics Inc. is navigating challenging financial waters, as reflected in the recent amendment of exercise prices for outstanding warrants. The company's strategic adjustments come at a time when its stock performance and financial metrics raise concerns among investors. According to InvestingPro data, XORTX holds a market capitalization of just $7.59 million and exhibits a negative P/E ratio of -2.42, which worsens to -3.52 when adjusted for the last twelve months as of Q4 2023. Such figures suggest that the company is not only unprofitable but also valued by the market at less than its net income, indicating investor skepticism about its future earnings potential.
Moreover, the stock has experienced a significant decline over the past week and month, with price total returns of -10.03% and -28.51% respectively. This volatility is reinforced by an InvestingPro Tip that highlights the stock's tendency to move in the opposite direction of the market. Despite these challenges, it's noteworthy that XORTX has more cash than debt on its balance sheet, providing some financial flexibility as it continues to burn through cash at a rapid pace.
Investors interested in a deeper analysis will find additional InvestingPro Tips, such as concerns over weak gross profit margins and expectations for net income to drop this year. With analysts not anticipating profitability for the current year, and the company not paying dividends, the investment profile is one for those with a high tolerance for risk. For a comprehensive understanding of XORTX's financial health and stock performance, including the full list of 11 InvestingPro Tips, visit InvestingPro. And remember, using the coupon code PRONEWS24 will provide an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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