Rakovina Therapeutics Announces Closing of Oversubscribed $3M Private Placement

/EIN News/ -- VANCOUVER, British Columbia, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Rakovina Therapeutics Inc. (TSX-V: RKV, the “Company”, “Rakovina”, or “Rakovina Therapeutics”) a biopharmaceutical company committed to advancing new cancer therapies based on novel DNA-damage response technologies is pleased to announce the closing of a $3.0 million private placement.

The private placement consists of 50,000,000 units (the “Units”) at a price of $0.06 per Unit. Each Unit consists of one common share of the Company (each, a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder thereof to subscribe for and purchase one Common Share of the Company for a period of 24 months from the date of issue at a price of $0.10 per Common Share. Rakovina retains the right to accelerate the Warrant exercise period if, upon written notice to the holder, the 20-day volume-weighted average price of its Common Shares exceeds $0.30.

In connection with the Private Placement, the Company paid cash finder’s fees to Canaccord Genuity Corp., Ventum Financial Corp., Haywood Securities Inc., Research Capital Corporation, Hampton Securities Limited, Ewing Morris & Co. Investment Partners Ltd. and Leede Financial Inc. (each a “Finder”, and collectively, the “Finders”) in the aggregate amount of $180,841 and issued a total of 3,021,872 non-transferable finder’s warrants (each, a “Finder’s Warrant’) to the Finders, in accordance with the policies of the TSX Venture Exchange (the “TSXV”). Each Finder’s Warrant entitles the holder thereof to subscribe for and purchase one Common share of the Company for a period of 24 months from the date of issue at a price of $0.10 per Common Share, subject to acceleration on the same terms as the Warrants issued in connection with the private placement.

The private placement is subject to the final acceptance of the TSXV and all securities issuable in connection with the private placement are subject to a hold period of four months plus one day from the date of issuance, in accordance with applicable securities laws.

The proceeds of the private placement will be used to accelerate both discovery and development of the Company’s proprietary drug candidates, shortlisted from the Deep Docking and Variational AI platforms.

“This overwhelming response from our investors underscores the strength of our science, the extraordinary talent and dedication of our team and the transformative potential of our therapies,” said Jeffrey Bacha, Executive Chairman of Rakovina Therapeutics. “We are deeply grateful for the trust placed in us and remain resolute in our mission to utilize leading AI technologies to develop innovative solutions for cancer care.”

The Company extends its heartfelt thanks to its investors, partners, and team for their unwavering support as Rakovina continues its work to bring new hope to patients and families affected by cancer.

Rakovina is pleased to announce its engagement of Fairfax Partners Inc. as its Investor Relations (IR) partner. With extensive expertise in investor engagement strategies, Fairfax will implement a comprehensive six-month IR program designed to enhance Rakovina’s market presence and expand its investor base. The program, which includes an option to renew for an additional six months, focuses on complementing traditional IR efforts with targeted online marketing campaigns, activation of a robust social media influencer network, and collaboration with external consultants and global wealth management channels. These initiatives will support Rakovina’s strategic plan for 2025 by institutionalizing its investor base and strengthening its distribution capabilities.

Under the agreement, Fairfax will receive a monthly fee of $5,000 plus GST, a one-time setup fee of $15,000 plus GST, and a marketing budget of $120,000 plus GST, disbursed as follows: $80,000 upon signing and $40,000 two months later. Services provided by Fairfax include inbound and outbound phone communications, website and social media management, marketing material preparation, news release support, and roadshow assistance, ensuring Rakovina’s IR efforts align with market expectations. Fairfax Partners Inc., located at 306-1238 Seymour Street, Vancouver, BC, confirms that neither its directors nor officers hold any securities of Rakovina. For inquiries, please contact connect@fairfaxpartners.com.

“We are thrilled to partner with the seasoned team at Fairfax Partners to expand our investor base and increase awareness of Rakovina Therapeutics’ vision. Fairfax’s creative and forward-thinking approach to investor relations will be a critical asset as we enter a pivotal year. By harnessing their extensive network and digital expertise, we aim to significantly enhance our market presence and deliver lasting value to our shareholders,” said Mr. Bacha.

About Rakovina Therapeutics Inc.

Rakovina Therapeutics Inc. is dedicated to developing innovative cancer therapies targeting the DNA-damage response. The company has established a development pipeline of novel DNA-damage response inhibitors by leveraging Artificial Intelligence (AI) to accelerate the identification and optimization of drug candidates. Rakovina Therapeutics aims to advance one or more of these candidates into human clinical trials in collaboration with pharmaceutical partners and secure marketing approvals from Health Canada, the U.S. Food and Drug Administration, and other 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 terms of the private placement, the closing of the private placement, the receipt of final TSXV approval, the proposed business plan of the Company; the Company’s commitment to advancing new cancer therapies; the ability of the Company to extract value from its AI collaborations; the Company’s ability to execute on its business plans while maintaining high standards of research; the ability of Pharma Inventor Inc. to accurately provide medicinal chemistry support; the projected timeline and effectiveness of the Company’s strategy to utilize the Deep Docking AI platform; and the Company’s ability to generate shareholder value. 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@rakovinatherapeutics.com

Invest Relations &Media
Michelle Seltenrich
ir@rakovinatherapeutics.com
778-773-5432