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Note 11 - Subsequent Event
9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Subsequent Events [Text Block]

11. Subsequent Events

 

Milestone payment of $6 million from 3D Medicines

 

On October 6, 2022, the Company received a $6 million development milestone payment from its licensee, 3D Medicines Inc.  This amount was recorded as an account receivable on the condensed consolidated balance sheet as of September 30, 2022. This milestone is based on the initiation of the global Phase 3 PROC clinical trial in the Territory for the development of batiraxcept. The Company's collaboration and license agreement with 3D Medicines Inc. is for the development and commercialization of batiraxcept in oncology indications in the Territory.

 

Private placement equity financing

 

On October 27, 2022, the Company closed on definitive agreements with new biotechnology investors, existing investors, Company management and certain Company Directors for the issuance and sale of an aggregate of 45,178,811 shares of its common stock (or pre-funded warrants in lieu thereof) and warrants to purchase up to an aggregate of 45,178,811 shares of common stock and/or pre-funded warrants in a private placement offering priced at-the-market under Nasdaq rules. The purchase price per share and accompanying warrant was $0.9199 for all investors who participated in the deal (or $0.9198 per pre-funded warrant and accompanying warrant). Fifty percent of the warrants have an exercise price of $0.7949 per share and will expire on the date that is the later of: (i) 15 months from the date an increase in the number of authorized shares of common stock is effected, or (ii) one month after the public announcement of the topline Phase 3 platinum-resistant ovarian cancer ("PROC") data. The remaining 50% of the warrants will have an exercise price of $0.7949 per share and will expire 30 months from the date an increase in the number of authorized shares of common stock is effected. All of the warrants other than the pre-funded warrants are exercisable for cash only. The gross proceeds were approximately $41.5 million before deducting placement agent fees and other expenses and will be used to fund the Company's clinical development programs.