Silexion Therapeutics announces warrant exercise for $3.3 million, for developing RNAi therapies targeting KRAS-driven cancers.
Quiver AI Summary
Silexion Therapeutics Corp. announced the immediate exercise of outstanding warrants to purchase 2,221,523 ordinary shares at an exercise price of $1.35 per share, expected to yield approximately $3.3 million in gross proceeds. The shares are registered under a Form S-1 registration statement, and the offering is set to close around January 30, 2025, subject to customary conditions. The company intends to use the funds for working capital and corporate purposes, with H.C. Wainwright & Co. serving as the exclusive placement agent. As part of this agreement, Silexion will issue new unregistered warrants with an exercise price of $1.50 per share. The new warrants will be immediately exercisable for a term of 24 months and were offered through a private placement exempt from registration requirements. Silexion is a biotech firm focused on developing RNA interference therapies for KRAS-driven cancers.
Potential Positives
- Issuance of 2,221,523 ordinary shares through the exercise of warrants is expected to generate approximately $3.3 million in gross proceeds, enhancing the company’s working capital.
- The new warrants issued in conjunction with the exercise have an exercise price of $1.50, which can potentially create additional capital for the company in the future.
- The commitment to file a Resale Registration Statement with the SEC for the new warrants indicates a structured approach to compliance and transparency, enhancing investor confidence.
Potential Negatives
- The issuance of new unregistered warrants with an exercise price of $1.50 may dilute existing shareholders' equity, leading to potential dissatisfaction among investors.
- The necessity of filing a registration statement with the SEC for the new warrants indicates that the company may be reliant on additional capital raises, which could suggest financial instability or signaling to the market that the company needs more funding.
- The forward-looking statements include significant risks and uncertainties regarding the company's ability to complete preclinical studies and initiate clinical trials, implying potential setbacks in their product development pipeline.
FAQ
What did Silexion Therapeutics announce on January 29, 2025?
Silexion Therapeutics announced the immediate exercise of warrants for 2,221,523 ordinary shares to raise approximately $3.3 million.
How will Silexion use the proceeds from the warrant exercise?
The net proceeds will be used as working capital for general corporate purposes.
Who is the placement agent for Silexion's offering?
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
What is the exercise price of the new unregistered warrants?
The new unregistered warrants will have an exercise price of $1.50 per share.
What types of cancers does Silexion therapeutics focus on?
Silexion Therapeutics focuses on developing RNAi therapies for KRAS-driven cancers, particularly solid tumors.
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Full Release
Cayman Islands, January 29, 2025 -- Silexion Therapeutics Corp. (NASDAQ: SLXN) (“Silexion Therapeutics” or the “Company”), a clinical-stage biotech developing RNA interference (RNAi) therapies for KRAS-driven cancers, today announced the entry into definitive agreements for the immediate exercise of certain outstanding warrants to purchase up to an aggregate of 2,221,523 of the Company’s ordinary shares originally issued in January 2025 having an exercise price of $1.35 per share. The ordinary shares issuable upon exercise of the warrants are registered pursuant to an effective registration statement on Form S-1 (No. 333-282932). The gross proceeds to the Company from the exercise of the warrants are expected to be approximately $3.3 million, prior to deducting placement agent fees and estimated offering expenses. The offering is expected to close on or about January 30, 2025, subject to satisfaction of customary closing conditions. The Company intends to use the net proceeds from the offering as working capital for general corporate purposes.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
In consideration for the immediate exercise of the warrants for cash and the payment of additional $0.125 per new unregistered warrant (additional $277,690.38 in the aggregate, which are included in the gross proceeds to the Company), the Company will issue new unregistered warrants to purchase up to 2,221,523 of the Company’s ordinary shares. The new warrants will have an exercise price of $1.50 per share, will be immediately exercisable upon issuance and will have a term of twenty-four months from the effective date of the Resale Registration Statement (as defined below).
The new warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended (the “1933 Act”) and, along with the ordinary shares issuable upon their exercise, have not been registered under the 1933 Act, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (“SEC”) or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the SEC covering the resale of the ordinary shares issuable upon exercise of the new warrants (the “Resale Registration Statement”).
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or 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 jurisdiction.
About Silexion Therapeutics
Silexion Therapeutics is a pioneering clinical-stage, oncology-focused biotechnology company developing innovative RNA interference (RNAi) therapies to treat solid tumors driven by KRAS mutations, the most common oncogenic driver in human cancers. The company's first-generation product, LODER™, has shown promising results in a Phase 2 trial for non-resectable pancreatic cancer. Silexion is also advancing its next-generation siRNA candidate, SIL-204, designed to target a broader range of KRAS mutations and showing significant potential in preclinical studies. The company remains committed to pushing the boundaries of therapeutic innovation in oncology, with a focus on improving outcomes for patients with difficult-to-treat cancers. For more information please visit: https://silexion.com
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact contained in this communication, including statements regarding the completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of net proceeds from the offering. These forward-looking statements are generally identified by terminology such as "may", "should", "could", "might", "plan", "possible", "project", "strive", "budget", "forecast", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. For example, the Company is using forward-looking statements when it discusses the timing and completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of proceeds therefrom. Forward-looking statements involve a number of risks, uncertainties, and assumptions, and actual results or events may differ materially from those projected or implied in those statements. Important factors that could cause such differences include, but are not limited to: (i) Silexion’s ability to successfully complete preclinical studies and initiate clinical trials; (ii) Silexion’s strategy, future operations, financial position, projected costs, prospects, and plans; (iii) the impact of the regulatory environment and compliance complexities; (iv) expectations regarding future partnerships or other relationships with third parties; (v) Silexion’s future capital requirements and sources and uses of cash, including its ability to obtain additional capital; and (vi) other risks and uncertainties set forth in the documents filed or to be filed with the SEC by the company, including the proxy statement/prospectus filed with the SEC on July 17, 2024. Silexion cautions you against placing undue reliance on forward-looking statements, which reflect current beliefs and are based on information currently available as of the date a forward-looking statement is made. Forward-looking statements set forth herein speak only as of the date they are made. Silexion undertakes no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, except as otherwise required by law
Company Contact
Silexion Therapeutics Corp
Ms. Mirit Horenshtein Hadar, CFO
[email protected]
Capital Markets Advisors for Silexion
Arx | Capital Markets Advisors
Capital Raising Desk
[email protected]