Lixte Biotechnology Holdings, Inc. (NASDAQ: LIXT) announced on July 1, 2025, that it has secured approximately $5.0 million through a private placement transaction with accredited investors. The clinical-stage pharmaceutical company, focused on developing novel cancer therapies, entered into the definitive agreement on June 30, 2025, with the transaction expected to close on July 2, 2025.
Financing Structure and Terms
The private placement consists of 2,382,084 shares of common stock (or pre-funded warrants), 3,573,130 shares of Series B Convertible Preferred Stock, and 6,355,214 common warrants. The offering was priced at market rates under Nasdaq rules, with $4.0 million payable at closing and an additional $1.0 million upon effectiveness of the resale registration statement.
The pre-funded warrants carry an exercise price of $0.00001 and are immediately exercisable, while the common warrants have an initial exercise price of $1.00 per share and expire 60 months after the resale registration statement becomes effective. Spartan Capital Securities, LLC served as the exclusive placement agent for the transaction.
Lead Compound Development
Lixte's primary focus centers on LB-100, a first-in-class PP2A inhibitor that has demonstrated tolerability in cancer patients at doses associated with anti-cancer activity. The compound represents a pioneering effort in activation lethality, an entirely new field of cancer biology that advances a novel treatment paradigm.
According to the company, extensive published preclinical data indicates that LB-100 has the potential to significantly enhance both chemotherapies and immunotherapies, potentially improving outcomes for cancer patients. The approach is protected by a comprehensive patent portfolio.
Current Clinical Pipeline
Proof-of-concept clinical trials for LB-100 are currently in progress across multiple cancer types, including colon cancer, small cell lung cancer, and sarcoma. These trials represent the clinical validation of Lixte's activation lethality approach to cancer treatment.
The company positions LB-100 as part of a new treatment paradigm that could transform cancer therapy by enhancing the effectiveness of existing treatment modalities. The clinical trials aim to establish proof-of-concept for this novel therapeutic approach across different cancer indications.
Strategic Use of Proceeds
Lixte expects to utilize the net proceeds from the offering, combined with existing cash reserves, for general corporate purposes and working capital. This funding will support the company's ongoing clinical development programs and operational requirements as it advances its cancer therapy pipeline.
The private placement provides Lixte with additional financial resources to continue developing its innovative approach to cancer treatment while maintaining its focus on the clinical advancement of LB-100 across multiple oncology indications.
