Dogwood Therapeutics (NASDAQ: DWTX) completed a registered direct offering of 2,338,948 shares of common stock at $2.85 per share, and a private placement of 2,047,089 pre‑funded warrants that give holders the right to purchase up to 4,386,037 shares at an exercise price of $3.28. The transaction is expected to close on or about January 13 2026 and will generate up to $26.8 million in gross proceeds—$12.5 million from the share sale and a potential $14.4 million if all warrants are exercised.
The net proceeds will be directed toward advancing the company’s lead candidate, Halneuron, through the ongoing Phase 2b trial for chemotherapy‑induced neuropathic pain, and to support working capital and general corporate purposes. Halneuron has Fast Track designation from the FDA and interim data from 97 patients show separation from placebo; top‑line results are anticipated in Q3 2026. The capital injection is intended to extend Dogwood’s cash runway beyond the first quarter of 2026, a period that would otherwise be reached with the $10.1 million in cash reported as of September 30 2025 and a Q3 2025 net loss of $15.7 million.
Dogwood’s financial history underscores the urgency of the offering. The company previously raised $4.8 million in March 2025 and converted a $19.5 million loan into equity in the same month, eliminating all debt from its balance sheet. With no debt and a modest cash balance, the new equity round is the most direct way to sustain operations and fund the expensive Phase 2b study. The warrants, exercisable upon shareholder approval, represent a potential dilution of up to 4.4 million shares—roughly 12% of the post‑offering share count—if fully exercised.
CEO Greg Duncan emphasized that the transaction “provides a strong endorsement of our first‑in‑class candidates and the talent driving our research portfolio.” He added that the proceeds will “enable us to complete the Phase 2b readout and pursue strategic opportunities to strengthen the company’s pipeline.” Duncan’s remarks highlight the company’s intent to use the financing not only to finish the trial but also to position Dogwood for future partnership or acquisition discussions, a critical step given the high development costs and competitive landscape in the neuropathic pain market.
The offering is backed by a single healthcare‑focused institutional investor, whose identity has not been disclosed. Shareholder approval is required for warrant exercise, and the company has indicated that the approval process will be completed in a timely manner. While the potential dilution is significant, the financing is viewed as a necessary trade‑off to secure the company’s survival and advance a pipeline that could generate substantial revenue once approved.
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