Klotho Neurosciences, Inc. (NASDAQ: KLTO) announced it has successfully raised over $11 million in funding through the exercise of existing warrants by investors over the past ten days. The U.S.-based biogenetics company utilized a portion of these proceeds to eliminate all outstanding debt, positioning itself with a strengthened financial foundation for its neurodegenerative disease programs.
Financial Restructuring and NASDAQ Compliance
The warrant exercises generated proceeds that enabled Klotho to address multiple financial objectives simultaneously. The company allocated $3.1 million of the raised funds to extinguish all outstanding debt, resulting in a debt-free balance sheet. Chardan Capital Markets served as the exclusive financial advisor in connection with the public warrant exercises.
The funding also addresses NASDAQ listing requirements, with Klotho stating it now surpasses the stockholders' equity thresholds required to remain in compliance with NASDAQ listing requirements as outlined in its compliance plan.
Therapeutic Focus and Pipeline
Klotho Neurosciences specializes in developing innovative, disease-modifying cell and gene therapies utilizing an important human protein derived from the company's patented form of the "anti-aging" human Klotho gene (s-KL). The company's approach incorporates novel promoter and delivery systems designed to transform treatment of neurodegenerative and age-related disorders.
The company's current portfolio targets major neurodegenerative conditions including ALS, Alzheimer's disease, and Parkinson's disease. Their proprietary programs encompass cell and gene therapy approaches using DNA and RNA as therapeutics, complemented by genomics-based diagnostic assays.
Strategic Positioning
The financial restructuring positions Klotho with enhanced operational flexibility as it advances its therapeutic programs. The elimination of debt obligations and improved equity position provides the company with a cleaner capital structure as it pursues development of its Klotho gene-based therapies.
The company operates under management and advisory teams with extensive experience in biopharmaceutical product development and commercialization, according to the announcement.
