Lixte Biotechnology Holdings, Inc. (NASDAQ:LIXT), a pharmaceutical preparations company with a current market capitalization of $5.35 million, has entered into a sales agreement with WallachBeth Capital, LLC, which could see the company offer and sell common stock shares up to $1.7 million.
According to InvestingPro analysis, the stock is currently trading near its Fair Value, with shares up 16.5% in the past week. This at-the-market offering allows Lixte to sell shares through WallachBeth Capital, acting as an agent, at market prices or related prices.
The sales are to be conducted on the Nasdaq Capital Market or other existing trading markets for Lixte's common stock. The arrangement, detailed in a Form 8-K filed with the SEC today, is part of the company's shelf registration statement filed and declared effective in April 2024. The company maintains a strong liquidity position, with InvestingPro data showing a healthy current ratio of 5.13 and more cash than debt on its balance sheet.
Lixte has stated that the proceeds from any sales will be used for working capital and general corporate expenses, including the development of their lead clinical compound LB-100. The agreement specifies that WallachBeth Capital will receive a 3.5% commission on the gross sales price of any shares sold under the agreement. Lixte will also cover certain legal expenses and filing fees associated with the offering.
The agreement will remain in effect until the maximum dollar amount of shares has been sold, the agreement is terminated by either party, or the shelf registration statement expires on its third anniversary.
This sales agreement provides Lixte with the flexibility to raise capital as needed, depending on market conditions and the company's capital requirements. It is important to note that this report is not an offer to sell or a solicitation of an offer to buy any securities from the company. The offering is subject to market conditions, and the company has not guaranteed that any shares will be sold under the agreement.
This news is based on a press release statement and provides investors with the latest information regarding Lixte Biotechnology's financial strategy. For deeper insights into LIXT's financial health and access to 8 additional exclusive ProTips, visit InvestingPro.
In other recent news, Lixte Biotechnology reported an executive departure, with Vice President and Chief Operating Officer Eric Forman resigning effective December 31, 2024. The company also announced an amendment to its Development Collaboration Agreement with the Netherlands Cancer Institute and Oncode Institute, temporarily halting the exploration of LB-100 in treating various cancers until the start of a Phase 1b clinical trial. The annual funding for the study has also been reduced from €250,000 to €100,000.
In addition, Lixte Biotechnology has been granted an extension by the Nasdaq Stock Market to meet its minimum stockholders’ equity requirement by February 18, 2025. The company plans to address this by raising up to $4 million in capital through registered equity offerings. As part of its recent developments, Lixte has revised its director compensation policy, transitioning from cash payments to equity-based remuneration.
Furthermore, Lixte Biotechnology is partnering with the Netherlands Cancer Institute to conduct a clinical trial for their cancer drug, LB-100. This collaboration aims to enhance understanding of LB-100's effects when used in conjunction with other cancer therapies. These are among the recent developments involving Lixte Biotechnology.
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