TRACON Pharmaceuticals Inc (NASDAQ:TCON) said that, following the closing of its private placement announced on August 27, 2020, the group has entered into an additional definitive securities purchase agreement with multiple institutional health care focused funds to raise aggregate gross proceeds of approximately $5.0 million through another private placement of its common stock and pre-funded warrants.
TRACON said it will sell approximately 3.0 million shares of common stock, or in lieu of common stock, pre-funded warrants to purchase common stock at a purchase price of approximately $1.67 each. The pre-funded warrants will have a per share exercise price of $0.01 and will expire seven years from the date of issuance.
The closing of the private placement is expected to occur on or about August 31, 2020.
The company said it intends to use the net proceeds from the private placement to conduct the ENVASARC pivotal study of envafolimab in sarcoma and for working capital and general corporate purposes.
As previously announced, the ENVASARC trial was cleared by the US Food and Drug Administration on August 14, 2020.
TRACON is a clinical-stage biopharmaceutical company focused on the development and commercialization of novel targeted cancer therapeutics and utilizing a cost-efficient, CRO-independent product development platform to partner with ex-US companies to develop and commercialize innovative products in the US.
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