Decoy Therapeutics Inc. has entered into a securities purchase agreement with an institutional investor for a private placement expected to raise approximately $3.5 million in gross proceeds. The agreement includes the sale of common stock (or pre-funded warrants) and accompanying milestone-based warrants, which could provide up to an additional $17.5 million upon exercise. Net proceeds will be used to advance the company's lead asset into clinical trials and for general corporate purposes.
Key Details
- Transaction Terms: The company agreed to sell an aggregate of 592,217 shares of common stock (or pre-funded warrants) at a purchase price of $5.91 per share, with an expected closing date of June 29, 2026.
- Potential Proceeds: The placement will generate initial gross proceeds of approximately $3.5 million, with the potential for up to an additional $17.5 million if all milestone-based warrants are exercised for cash.
- Milestone Warrants: The investor will receive Series A, B, and C warrants exercisable at $5.91 per share upon achieving specific clinical milestones, including a Phase 1 trial filing, Phase 2a trial approval, and meeting the Phase 2a primary endpoint.