Acer Therapeutics Raises $2.7 Million in Registered Direct Offering Priced At-the-Market
March 22, 2023
Rare Daily Staff
Rare disease drug developer Acer Therapeutics said it is raising $2.675 million in a registered direct offering priced at-the-market under Nasdaq rules.
The company has entered into a definitive agreement for the purchase and sale of 2.9 million shares of the company’s common stock (or common stock equivalents) at a purchase price of $0.916 per share in a registered direct offering priced at-the-market under Nasdaq rules.
In addition, in a concurrent private placement, the company will issue warrants to purchase up to 2.9 million shares of common stock. The warrants will have an exercise price of $0.791 per share, will be exercisable immediately following issuance, and have a term of five and one-half years from the issuance date.
Acer intends to use the net proceeds from this offering for general corporate purposes and working capital. In December 2022, the company received U.S. regulatory approval to market Olpruva for oral suspension for the treatment of certain patients with the urea cycle disorders
that covers deficiencies of carbamylphosphate synthetase, ornithine transcarbamylase, or argininosuccinic acid synthetase.
Urea cycle disorders are a group of rare, genetic disorders that can cause harmful ammonia to build up in the blood, potentially resulting in brain damage and neurocognitive impairments, if ammonia levels are not controlled. Any increase in ammonia over time is serious. People with the condition must adhere to dietary protein restrictions and have alternative medication options to help control ammonia levels.
Olpruva is used along with certain therapy, including changes in diet, for the long-term management of certain urea cycle disorders. It is not used to treat rapid increase of ammonia in the blood (acute hyperammonemia), which can be life-threatening and requires emergency medical treatment.
Acer’s pipeline also includes candidates to treat Maple Syrup Urine disease and vascular Ehlers-Danlos syndrome in patients with a confirmed COL3A1 mutation.
Sign up for updates straight to your inbox.