Rakovina Therapeutics Inc. announced the financial results for the first quarter of 2024 ending March 31, and provides an update to corporate activities.
VANCOUVER, British Columbia, May 30, 2024 (GLOBE NEWSWIRE) -- Rakovina Therapeutics Inc. (TSX.V: RKV), (the “Company”) a biopharmaceutical company committed to advancing new cancer therapies based on novel DNA-damage response technologies announced the financial results for the first quarter of 2024 ending March 31, and provides an update to corporate activities.
“This year has started with significant changes for Rakovina Therapeutics in the most positive sense,” said Executive Chairman Jeffrey Bacha. “Our strategic shift to include AI in our drug developments, additions to the scientific team and expansion of our research collaborations all position Rakovina Therapeutics to successfully achieve our goal of improving the lives of patients with cancer.”
Q1 2024 Financial Highlights
- For the three months ended March 31, 2024 the Company reported a net loss of $752,383, inline with Company estimates.
- Research and development operating expenses were $438,983 and general and administrative expenses were $251,090.
- Total cash operating expenses related to research and development and general and administrative expenses for the three months ended March 31, 2024 were $522,705.
Recent Corporate Highlights
- On March 27, 2024, we announced a collaboration agreement with Dr. Artem Cherkasov granting Rakovina Therapeutics exclusive access to the proprietary Deep Docking (trademarked) artificial intelligence (“AI”) Platform for DNA-damage response targets. Using the Deep Docking platform Rakovina Therapeutics is analyzing billions of molecular structures to evaluate their potential as targeted cancer drugs. The Company plans to validate the activity of the most promising candidates using its established research and development infrastructure at the University of British Columbia. Rakovina Therapeutics intends to advance validated drug candidates to human clinical trials in collaboration with pharmaceutical partners.
- On May 8, 2024, we announced the expansion of contracts with the University of British Columbia (“UBC”) and Pharma Inventor Inc. to support the Company’s Deep Docking AI Drug Discovery Platform. The wet lab infrastructure at UBC combined with the medicinal chemistry expertise will allow the Company to quickly synthesize and evaluate lead drug candidates identified by the AI platform.
- On May 23, 2024, the Company announced the undertaking of a non-brokered Private Placement (the “Offering”) for gross proceeds of up to $1.5 million at a purchase price of $0.10 per Unit which includes lead orders totalling approximately $1.25 million from two new investors. Each Unit will be comprised of one (1) common share of Rakovina Therapeutics common share stock and one (1) share purchase warrant at a purchase price of $0.20 for a period of three years (36 months) after the closing date of the Offering. If the closing price for the Common Shares on the TSX Venture Exchange (the “TSXV”) is $0.25 or greater for five consecutive trading days, the expiry date of the Warrant shall be accelerated to the date that is 30 days following the last day of the five-trading day period.
The Company plans to use the proceeds primarily to support research and development activities related to its recently announced Artificial Intelligence (AI) collaboration that provides exclusive access to the proprietary Deep Docking platform for DNA-damage response targets.
Summary Financial Results for the quarter ended March 31, 2024
| Selected Financial Information | As at March 31, 2024 $ | |
| Cash & cash equivalents | 177,188 | |
| Working capital | (87,183) | |
| Intangible assets | 4,381,391 | |
| Total Assets | 4,608,212 | |
| Total liabilities | 1,667,051 | |
| Deficit | (11,667,694) | |
| Total equity | 2,941,161 |
| Statements of net loss and comprehensive loss data: | For the three months ended March 31, 2024 $ | For the three months ended March 31, 2023 $ | ||
| Research & Development | 438,983 | 433,344 | ||
| General and Administrative | 251,090 | 212,043 | ||
| Net loss and comprehensive loss | (752,383 | ) | (641,790 | ) |
| Basic and diluted income (loss) per share | (0.01 | ) | (0.01 | ) |
| Operating cash burn | 522,705 | 472,628 | ||
| Weighted average shares outstanding | 70,084,925 | 69,829,500 | ||
Further to the Company’s press release on April 1, 2024, the Company wishes to clarify that the capital market advisory services agreement entered into with Insight Capital Partners Inc. (“ICP”) also includes a separate market making services agreement with ICP Securities Inc. (“ICP Securities”). ICP Securities provides market making services to the Company, and ICP Securities receives a fee of $7,500 plus applicable taxes per month. The market making services agreement between the company and ICP Securities is for a term of three months commencing on March 25, 2024, and may continue on a month-to-month basis. ICP is acting as a collection agent on behalf of ICP Securities.
Rakovina Therapeutics’ financial statements as filed with SEDAR can be accessed from the Company’s website at: https://www.rakovinatherapeutics.com/corporate-profile/
About Rakovina Therapeutics Inc.
Rakovina Therapeutics Inc. is focused on the development of new cancer treatments based on novel DNA-damage response technologies. The Company has established a pipeline of novel DNA-damage response inhibitors with the goal of advancing one or more drug candidates into human clinical trials and obtaining marketing approval for new cancer therapeutics from Health Canada, the United States Food and Drug Administration and similar international regulatory agencies. Further information may be found at www.rakovinatherapeutics.com.
The TSXV has neither approved nor disapproved the content of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Notice Regarding Forward-Looking Statements:
This release includes forward-looking statements regarding the Company and its respective business, which may include, but is not limited to, statements with respect to the proposed business plan of the Company and other statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative variations) of such words and phrases, or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such statements are based on the current expectations of the management of the Company. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including risks regarding the medical device industry, economic factors, regulatory factors, the equity markets generally and risks associated with growth and competition.
Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events, or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. The reader is referred to the Company’s most recent filings on SEDAR for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company’s profile page at www.sedar.com.
For Further Information Contact:
David Hyman, Chief Financial Officer
info@rakovinatehrapeutics.com
Invest Relations & Media
Ira M. Gostin
ir@rakovinatherapeutics.com
775-391-0213
