Moleculin Biotech (NASDAQ:MBRX) Enters Into Warrant Exercise Inducement Agreement

On February 13, 2025, Moleculin Biotech, Inc. filed a Form 8-K with the Securities and Exchange Commission, announcing the company’s entry into a warrant exercise inducement offer letter. The letter, which was signed with a holder of specific existing warrants, entails the issuance of new warrants, termed as the “Inducement Warrants.”

The agreement outlined that the holder would exercise their existing warrants for cash at a Reduced Exercise Price in exchange for Moleculin Biotech’s commitment to issue Inducement Warrants. These new warrants will allow the purchase of up to 11,657,140 shares of the Company’s common stock. As part of the agreement, the exercise price for the existing warrants was reduced to $1.00 per share.

The Existing Warrants encompass warrants issued in December 2023 and Series A and Series B Warrants issued in August 2024. The company anticipates receiving gross proceeds of approximately $5.8 million from the exercise of the Existing Warrants after deducting applicable fees and expenses.

Furthermore, Moleculin Biotech agreed to file a registration statement on Form S-3 by March 30, 2025, for the resale of the Inducement Warrant Shares upon exercise. Each Inducement Warrant will have an exercise price of $0.75 and may be exercised for a period of five years from the date of issuance.

The Inducement Warrants have certain restrictions, including limitations on exercising them in a manner that exceeds ownership thresholds and provisions for adjustments in the event of stock-related events. Additionally, in the case of specific fundamental transactions, the holder of the Inducement Warrants has the right to receive the Black Scholes value of the warrants.

The representations, warranties, and covenants disclosed in the Inducement Letter were made for the benefit of the participating parties. Moleculin Biotech highlighted that these terms served to allocate risk between the involved entities and should not be interpreted as statements of fact.

The Form 8-K outlined that the Inducement Warrants would be issued under an exemption from registration requirements, and the related securities would not be registered under the Securities Act. The filing also included the forms of the Inducement Warrant and Inducement Letter as Exhibits 4.1 and 10.1, respectively.

Investors and interested parties are encouraged to refer to the full text of the filing for comprehensive information. This article provides a summary of the key details contained in Moleculin Biotech’s recent Form 8-K submission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Moleculin Biotech’s 8K filing here.

About Moleculin Biotech

Moleculin Biotech, Inc, a clinical stage pharmaceutical company, focuses on the development of drug candidates for the treatment of cancers and viruses. Its lead drug candidate is Annamycin, which is in Phase 1B/2 clinical trials for the treatment of relapsed or refractory acute myeloid leukemia (AML) and soft tissue sarcoma metastasized to the lungs.