Moleculin Biotech, Inc. (NASDAQ: MBRX) has closed its IPO that was announced in the previous month. The company said the IPO raised slightly more than $9.24 million in gross proceeds. Some 1.54 million shares were offered at a price of $6 apiece. The management has also restated the intended use of the IPO funds.
Moleculin’s management termed the IPO a huge success and praised the strategy to drum up publicity for the IPO on Facebook, where more than 77,000 fans were reached with the IPO message.
In the preparation for the IPO, Moleculin Biotech, Inc. (NASDAQ: MBRX) said it would offer a minimum of 1.4 million shares and a maximum of 2 million shares. The actual offer was slightly above the lower end of the intended offer volume. In terms of pricing, the company quoted a range of $5 to $6 in its IPO filing, but it ended up settling on the high-end of the pricing range. With that translates to gross proceeds of slightly more than $9.24 million from the IPO.
What’s the money for?
After deducting commissions and other offering expenses, Moleculin intends to use the net proceeds from the IPO to finance its various clinical and preclinical programs. Specifically, the management said the funds will help with bankrolling the Phase 2 clinical trial of their compound called Annamycin. The drug candidate is being developed for treatment of relapsed acute myeloid leukemia (AML).
If there are some more funds left, Moleculin Biotech, Inc. (NASDAQ: MBRX) will use them for working capital and other research activities. The company has two active preclinical programs, with one targeting metabolism of tumors and the other aiming at some hard-to-target tumor cells.
Pressure to deliver for Moleculin Biotech, Inc. (NASDAQ: MBRX)
As a public company, the management of Moleculin Biotech, Inc. (NASDAQ: MBRX) will feel the pressure to deliver on Wall Street expectations. But when you listen to the company’s CEO, Walter Klemp, you get the impression that they management feels equal to the task ahead.