NKGen Biotech Secures Funding to Meet Listing Standards
NKGN Secures Strategic Funding for Regulatory Compliance
NKGN recently announced significant funding in the amount of $2.0 million from a strategic investor in Japan. This funding comes in the form of common equity and warrants, underscoring a strong commitment to financial stability and compliance.
Resources for Compliance
The funding will provide NKGen vital resources to regain compliance with its reporting obligations and listing standards, which are necessary for operational stability and growth. Currently, share trading will transition to the OTC Expert Market, offering limited trading capabilities while the company works on enhancing its financial standings.
Plan for Future Uplisting
NKGN has outlined its intentions to uplist to OTCQB as soon as its SEC filings are up-to-date, with aspirations to eventually return to the Nasdaq or NYSE American. This strategic move aims to ensure that the company meets all requirements necessary for listed companies, providing a solid foundation for future growth.
Boosting Clinical Development
NKGen Biotech, renowned for its development of innovative NK cell therapeutics, intends to use this funding to strengthen its ongoing Phase 2 clinical trials. The investment is further aimed at fulfilling public company reporting requirements while managing the company’s obligations on senior secured debt effectively.
Acknowledgment of Challenges
"The past year was particularly challenging due to external factors, including the unexpected bankruptcy of our former parent company. However, our team has remained committed to our mission," stated Paul Y. Song, M.D., the CEO of NKGN. The company’s leadership believes in the potential of troculeucel, its autologous expanded NK cell therapy intended for conditions like Alzheimer's disease, to generate renewed interest among investors.
The Importance of Strategic Investor Relationships
James Graf, NKGen's Interim CFO, remarked on the significance of this strategic investment, emphasizing that this partnership comes at a crucial time. Despite operational challenges, NKGN is now better positioned to regain compliance efficiently. With all necessary service providers onboard, efforts to file required documentation are currently in motion.
Understanding the Impact of Market Changes
Following the transition to the Expert Market, trading of NKGN shares will remain somewhat limited. The Expert Market restricts access to bid and ask prices, which can make trading less fluid. The management appreciates the patience of investors during this transitional phase, with plans to regain compliance anticipated shortly.
The Vision Moving Forward
The company is striving to uplist back to Nasdaq or NYSE American as they meet all prerequisite criteria, including SEC filing compliance and minimum market capitalization obligations. Recent actions also include a shareholder-approved reverse stock split, which aims to assist with compliance of the required share price.
About NKGN and Troculeucel
NKGN is a clinical-stage biotechnology company dedicated to the commercialization of unique autologous and allogeneic NK cell therapeutics. Troculeucel, the leading candidate, is a cell-based immunotherapy aimed at treating neurodegenerative disorders and various cancers. This innovative treatment, recognized by the World Health Organization, marks a significant leap in NKGen’s market strategy.
Company Contact Information
Internal Contact:
Denise Chua, MBA, CLS, MLS (ASCP)
SVP, Corporate Affairs
949-396-6830
dchua@nkgenbiotech.com
External Contact:
Kevin Gardner
Managing Director, LifeSci Advisors, LLC
kgardner@lifesciadvisors.com
Frequently Asked Questions
What is NKGN's recent funding amount?
NKGN recently raised $2 million from a Japanese strategic investor.
What market will NKGN shares trade in temporarily?
The shares will temporarily trade in the OTC Expert Market.
What is troculeucel?
Troculeucel is NKGen's innovative NK cell therapy aimed at treating neurodegenerative diseases and cancers.
What are NKGN's future uplisting plans?
The company aims to uplist to OTCQB, with aspirations for Nasdaq or NYSE American.
Who are the primary contacts for NKGN?
The primary contacts are Denise Chua for corporate affairs and Kevin Gardner for external relations.
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