Net proceeds, along with existing cash, cash
equivalents, and marketable securities are expected to extend cash
runway into Q2 2026 and enable expansion of DKN-01 DeFianCe
clinical trial and development program
CAMBRIDGE, Mass., April 11,
2024 /PRNewswire/ -- Leap Therapeutics, Inc.
(Nasdaq:LPTX), a biotechnology company focused on developing
targeted and immuno-oncology therapeutics, today announced it
has entered into a securities purchase agreement with a select
group of institutional investors to issue and sell an aggregate of
12,660,993 shares of its common stock ("Common Stock") at a price
of $2.82 per share and pre-funded
warrants to purchase 1,523,404 shares of Common Stock at a price of
$2.819 per share of Common Stock
issuable upon exercise of the pre-funded warrants, in a private
placement. Leap anticipates the gross proceeds from the private
placement will be approximately $40
million, before deducting any offering-related expenses. The
financing is expected to close on April 15,
2024, subject to satisfaction of customary closing
conditions.
The private placement investors included new and existing
investors, including Gilead Sciences, Inc., a life sciences-focused
investor, Samsara BioCapital, 683 Capital Partners, LP, Laurion
Capital Management, and Rock Springs Capital.
J.P. Morgan acted as the exclusive placement agent for the
transaction.
Leap intends to use the net proceeds from the financing to fund
the continued development of its lead monoclonal antibody program,
DKN-01, by expanding the randomized controlled Part B of the
DeFianCe Study in patients with second-line colorectal cancer from
130 to 180 patients, by enabling data to mature in the randomized
controlled Part C of the DisTinGuish study in patients with
first-line gastric cancer, and by manufacturing clinical trial
material to permit Phase 3 readiness, and for working capital and
general corporate purposes. The net proceeds from this financing,
combined with existing cash, cash equivalents and marketable
securities, are expected to fund Leap's operating and capital
expenditures into the second quarter of 2026.
The shares of Common Stock and the pre-funded warrants to be
sold in this financing, as well as the shares of Common Stock
issuable upon exercise of the pre-funded warrants, have not been
registered under the Securities Act of 1933, as amended (the
"Securities Act"), or any state or other applicable jurisdiction's
securities laws and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and applicable state or other jurisdictions'
securities laws. Pursuant to the securities purchase agreement,
Leap has agreed to file a registration statement with the U.S.
Securities and Exchange Commission (the "SEC") to register the
resale by the investors of the shares of Common Stock and the
shares of Common Stock issuable upon exercise of the pre-funded
warrants sold in the private placement. Any offering of the
Company's Common Stock under the resale registration statement will
only be made by means of a prospectus.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy Leap's Common Stock, pre-funded
warrants, or any other security of Leap, nor shall there be any
offer, solicitation, or sale of Leap's Common Stock, pre-funded
warrants, or any other security of Leap in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
The private placement is being conducted in accordance with
applicable Nasdaq rules and was priced to satisfy the "Minimum
Price" requirement (as defined in the Nasdaq rules).
About Leap Therapeutics
Leap Therapeutics (Nasdaq:
LPTX) is focused on developing targeted and immuno-oncology
therapeutics. Leap's most advanced clinical candidate, DKN-01, is a
humanized monoclonal antibody targeting the Dickkopf-1 (DKK1) protein. DKN-01 is being developed in
patients with esophagogastric, gynecologic, and colorectal cancers.
FL-301, is a humanized monoclonal antibody targeting Claudin18.2,
being developed in patients with gastric and pancreatic cancer.
Leap also has preclinical antibody programs targeting
Claudin18.2/CD137 and GDF15. For more information about Leap
Therapeutics, visit http://www.leaptx.com or view our public
filings with the SEC that are available via EDGAR at
http://www.sec.gov or via https://investors.leaptx.com/.
FORWARD-LOOKING STATEMENTS
This press release contains
forward-looking statements within the meaning of the federal
securities laws. Such statements are based upon current plans,
estimates and expectations of the management of Leap that are
subject to various risks and uncertainties that could cause actual
results to differ materially from such statements. The inclusion of
forward-looking statements should not be regarded as a
representation that such plans, estimates and expectations will be
achieved. Words such as "anticipate," "expect," "project,"
"intend," "believe," "may," "will," "should," "plan," "could,"
"continue," "target," "contemplate," "estimate," "forecast,"
"guidance," "predict," "possible," "potential," "pursue," "likely,"
and words and terms of similar substance used in connection with
any discussion of future plans, actions or events identify
forward-looking statements.
All statements, other than historical facts, including
statements regarding the potential safety, efficacy, and regulatory
and clinical progress of Leap's product candidates; the anticipated
expansion of the DeFianCe study and timing for completion of
clinical trials and release of clinical trial data and the
expectations surrounding the outcomes thereof; Leap's future
clinical or preclinical product development plans for any of Leap's
product candidates; Leap's estimations of projected cash runway;
the anticipated closing date of the private placement; the amount
of proceeds to be received by Leap and Leap's intended use of
proceeds from the private placement; and any assumptions underlying
any of the foregoing, are forward-looking statements. Important
factors that could cause actual results to differ materially from
Leap's plans, estimates or expectations could include, but are not
limited to: (i) Leap's ability to successfully execute its clinical
trials and the timing of enrollment in and cost of such clinical
trials; (ii) the results of Leap's clinical trials and pre-clinical
studies; (iii) Leap's ability to successfully enter into new
strategic partnerships for DKN-01 or any of its other programs and
to maintain its ongoing collaborations with BeiGene, NovaRock and
Adimab; (iv) whether any Leap clinical trials and products will
receive approval from the U.S. Food and Drug Administration or
equivalent foreign regulatory agencies; (v) exposure to inflation,
currency rate and interest rate fluctuations, as well as
fluctuations in the market price of Leap's traded securities; and
(vi) that the initiation, conduct, and completion of clinical
trials, laboratory operations, manufacturing campaigns, and other
studies may be delayed, adversely affected, or impacted by global
conflict, or supply chain related issues. New risks and
uncertainties may emerge from time to time, and it is not possible
to predict all risks and uncertainties. No representations or
warranties (expressed or Implied) are made about the accuracy of
any such forward-looking statements. Leap may not actually achieve
the forecasts disclosed in such forward-looking statements, and you
should not place undue reliance on such forward-looking statements.
Such forward-looking statements are subject to a number of material
risks and uncertainties including but not limited to those set
forth under the caption "Risk Factors" in Leap's most recent Annual
Report on Form 10-K filed with the SEC, as well as discussions of
potential risks, uncertainties, and other important factors in its
subsequent filings with the SEC. Any forward-looking statement
speaks only as of the date on which it was made. Neither Leap, nor
any of its affiliates, advisors or representatives, undertake any
obligation to publicly update or revise any forward-looking
statement, whether as result of new information, future events or
otherwise, except as required by law. These forward-looking
statements should not be relied upon as representing Leap's views
as of any date subsequent to the date hereof.
CONTACT:
Douglas E.
Onsi
President & Chief Executive Officer
Leap Therapeutics, Inc.
617-714-0360
donsi@leaptx.com
Matthew DeYoung
Investor Relations
Argot Partners
212-600-1902
leap@argotpartners.com
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SOURCE Leap Therapeutics, Inc.
