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CALGARY, Alberta, Jan. 31, 2020 (GLOBE NEWSWIRE) -- XORTX Therapeutics Inc. ("XORTX" or the "Company") (CSE: XRX; OTCQB: XRTXF), a biopharmaceutical company focused on developing innovative therapies to treat progressive kidney disease announces that it has re-priced its non-brokered private placement originally announced on April 29, 2019 to more accurately reflect the current market price of the Company's common shares.
The private placement will now consist of up to 36,000,000 units (the "Units") at $0.14 per Unit for gross proceeds of approximately $5 million (the "Private Placement"), with each Unit consisting of one common share and one common share purchase warrant exercisable at $0.25 for a period of one year from the issuance of the Units, provided, however, that if, at any time following the expiry of the statutory four month hold period, the closing price of the common shares on the Canadian Securities Exchange ("CSE") is greater than $0.35 for 10 or more consecutive trading days, the Company may notify the holder, by way of news release, that the warrants will expire on the 20th business day following the date of such notice, unless exercised by the holder before such date. The Company may pay finder's fees on a portion of the Private Placement in accordance with applicable securities laws and the policies of the CSE.
Allen Davidoff, XORTX's President & CEO stated,
"2020 has begun with flurry of positive activity. XORTX accepted an invitation to the JP Morgan Biotech Conference in San Francisco earlier this month where a large number of partnering and banking discussions related to both our autosomal dominant polycystic kidney disease ("ADPKD") and type 2 diabetic nephropathy ("T2DN") clinical programs occurred. As a result of recent positive developments related to both programs, interest in our ADPKD and T2DN programs has attracted broad interest from around the world in the past year. We are continuing these discussions with a goal to finalizing licensing agreements this year.
"Alongside these licensing discussions, the Company is also continuing its efforts to advance clinical development of XRx-008 for polycystic kidney disease (a phase 3 ready program) and XRx-221 for T2DN (a phase 2b ready program) and to this end, and in response to the challenging capital markets, we have repriced the private placement."
The securities issued under the Private Placement will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities. Closing of the Private Placement is subject to regulatory approval.
The net proceeds of the offering will be used to advance XORTX's development of XRx-008 and XRx-221 for polycystic kidney disease (a phase 3 ready program) and type 2 diabetic nephropathy (a phase 2b ready program) including operations and ongoing licensing discussions.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
About XORTX Therapeutics Inc.
XORTX Therapeutics Inc. is a biopharmaceutical company focused on developing innovative therapies to treat progressive kidney disease. XORTX has two lead programs to develop treatments for progressive kidney disease due to diabetes, diabetic nephropathy and polycystic kidney disease. XORTX's XRx-008 (a proprietary reformulation of Oxypurinol) is a late stage drug development program to treat autosomal dominant polycystic kidney disease (ADPKD). TMX-049, is a late phase 2b stage program in treat type 2 diabetic nephropathy (T2DN), under a Letter of Intent, that proposes a co-development agreement with Japan's Teijin Pharma Limited. Secondary programs focus on developing therapies for health consequences that accompany pre-diabetes, diabetes and cardiovascular disease. Additional information on XORTX Therapeutics is available at www.xortx.com.
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The CSE has neither approved nor disapproved the contents of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This news release includes forward-looking statements that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward-looking statements, including without limitation any statements concerning the Company's intentions, plans, estimates, beliefs or expectations regarding the future. Although the Company believes that any such intentions, plans, estimates, beliefs and expectations in this news release are reasonable, there can be no assurance that any such intentions, plans, beliefs and expectations will prove to be accurate. The Company cautions readers that all forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward-looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward-looking statements. The Company assumes no obligations to update any forward-looking statements, whether as a result of new information, future events or otherwise.
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