XORTX Therapeutics Secures Funds Through Private Placement
CALGARY, Alberta — XORTX Therapeutics Inc. (NASDAQ: XRTX | TSXV: XRTX | Frankfurt: ANU) has successfully completed a non-brokered private placement that will greatly enhance its funding for crucial projects. The company focuses on innovative therapies tailored for treating gout and progressive kidney disease, and the recent placement has resulted in the issuance of 1,267,123 Units at a price of US$0.73 each, culminating in total gross proceeds of US$925,000. This funding is designed to propel the company’s strategic initiatives moving forward.
Details of the Offering
Each Unit from this offering consists of one common share in XORTX's capital, accompanied by a common share purchase warrant. These Warrants allow holders to acquire one additional common share at a price of US$1.20 for a period of 60 months post-issuance. Notably, if the closing price surpasses US$2.00 for ten consecutive trading days, the Warrants will expire 30 business days after a notification is given.
Support from TSX Venture Exchange
The completion of the Offering has received the green light from the TSX Venture Exchange (TSXV). The securities issued will not face a four-month and one-day statutory hold period, allowing more rapid accessibility to capital by XORTX. This capital injection is intended for use within gout management programs, general working capital, and corporate purposes as detailed in the Offering Document. Additionally, the company has allotted $12,264 in finder's fees and issued 16,800 finder's warrants.
Prohibited Sales and Related Party Transactions
The issued securities are not registered under the U.S. Securities Act of 1933 and cannot be sold to investors in the United States unless a valid exemption has been procured. This stipulation reflects compliance with regulatory frameworks governing securities transactions.
Furthermore, the issuance of 8,191 Units to an insider has been classified as a "related party transaction" per the guidelines in Multilateral Instrument 61-101. XORTX has chosen to utilize exemptions concerning formal valuation and shareholder approval, as the value associated with these units is less than 25 percent of its market capitalization.
First Steps in Advancement
In other significant news, XORTX has opted not to proceed with a non-brokered private placement previously announced, shifting focus towards strategic allocation of present funds to expedite progress in drug development.
About XORTX Therapeutics Inc.
XORTX Therapeutics Inc. is committed to addressing serious health challenges with its clinical product portfolio. Focused on the advancement of three critical programs, these include XRx-026 for gout treatment, XRx-008 aimed at ADPKD, and XRx-101 for acute organ injuries related to respiratory infections. Additionally, XORTX is in the preliminary stages of developing XRx-225, which targets Type 2 diabetic nephropathy.
At XORTX, the mission is to improve the lives of individuals affected by conditions arising from aberrant purine metabolism. The company is dedicated to developing medications that not only aim to enhance the health of patients but also ensure their quality of life improves significantly.
Contact Information
If you wish to learn more about XORTX or have specific inquiries, please reach out to:
Allen Davidoff, CEO
+1 403 455 7727
adavidoff@xortx.com
Nick Rigopulos, Director of Communications
+1 617 901 0785
nick@alpineequityadv.com
Frequently Asked Questions
What is the recent funding initiative by XORTX?
XORTX has successfully completed a non-brokered private placement, raising US$925,000 to further its pharmaceutical developments.
What does each Unit consist of in the offering?
Each Unit comprises one common share and one warrant for purchasing an additional common share at US$1.20.
How long are the Warrants valid for purchase?
The Warrants are valid for 60 months unless certain pricing conditions trigger an accelerated expiration.
What are the focused areas for XORTX’s product development?
XORTX is developing therapies for gout, ADPKD, and acute organ injuries pertaining to respiratory infections.
Who can be contacted for more information regarding XORTX?
For further details, Allen Davidoff and Nick Rigopulos can be contacted via their provided emails and phone numbers.
