Grace Therapeutics announces private placement financing of up to $30M

Grace Therapeutics (GRCE) announced that it has entered into securities purchase agreements with new and existing healthcare focused institutional investors to raise up to approximately $30M in potential total gross proceeds, consisting of initial upfront funding of approximately $15M and the potential to receive up to an additional approximately $15M upon cash exercise of accompanying warrants at the election of the investors. The financing is being led by Nantahala Capital and ADAR1 Partners, LP, and includes participation from new and existing healthcare-focused institutional investors, including Stonepine Capital Management, among others. TD Cowen is acting as the placement agent for the private placement. Craig-Hallum is acting as a financial advisor to the company. Pursuant to the terms of the securities purchase agreements, Grace Therapeutics will issue an aggregate of 4,418,292 shares of its common stock and accompanying common warrants to purchase up to an aggregate of 4,418,292 shares of its common stock a a combined purchase price of $3.395 per share and accompanying warrants, in accordance with Nasdaq rules. The aggregate gross proceeds from the closing of the financing are expected to be approximately $15M. The financing is expected to close on February 11, 2025, subject to the satisfaction of customary closing conditions. Each common warrant will be exercisable for one share of common stock (or pre-funded warrants in lieu thereof) at an exercise price of $3.395 per share, will be immediately exercisable, and will expire on 5:00 p.m. (New York City time) on the earlier of (i) the 60th day after the date the U.S. Food and Drug Administration approves the New Drug Application for GTx-104 and (ii) September 25, 2028. The common warrants are being offered and sold at a purchase price of $0.125 per common warrant, which purchase price is included in the offering price per share and pre-funded warrant to be issued in the financing. If all common warrants to be issued are exercised in full for cash, the company will receive aggregate proceeds of approximately $15M. Grace Therapeutics intends to use the upfront net proceeds from the private placement for general corporate purposes and to fund pre-commercial development of GTx-104, a clinical stage, novel, injectable formulation of nimodipine being developed for IV infusion in aSAH patients to address significant unmet medical needs.