ADC Therapeutics announced it has entered into securities purchase agreements for a $100.0 million private investment in public equity (PIPE) financing, expected to close on June 16, 2025. The financing involves the sale of 13.0 million common shares at $3.53 per share and 15.7 million pre-funded warrants at $3.43 per pre-funded warrant.
The net proceeds from the PIPE are intended to fund ZYNLONTA clinical development and commercialization activities, working capital, and general corporate purposes. This financing is expected to extend the company's cash runway into 2028, providing significant financial stability.
As part of a strategic restructuring, ADC Therapeutics will advance its preclinical exatecan-based ADC targeting PSMA and discontinue early development efforts for other preclinical solid tumor programs. The company plans to shut down its UK facility and reduce its global workforce by approximately 30% by September 30, 2025, incurring estimated one-time cash restructuring charges of $6-7 million in Q2 2025.
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