Actuate Therapeutics, Inc. (NASDAQ: ACTU) has successfully closed a $17.25 million underwritten public offering to advance its lead investigational drug elraglusib, a novel glycogen synthase kinase-3 beta (GSK-3β) inhibitor designed to treat high-impact, difficult-to-treat cancers. The Chicago and Fort Worth-based clinical-stage biopharmaceutical company sold 2,464,286 shares of common stock at $7.00 per share, including 321,428 additional shares issued through the full exercise of the underwriter's over-allotment option.
Novel Mechanism Targets Cancer Resistance
Elraglusib represents a unique approach to cancer treatment by targeting molecular pathways that promote tumor growth and resistance to conventional cancer drugs such as chemotherapy. The investigational drug works through the inhibition of nuclear factor kappa-light-chain-enhancer of activated B cells (NF-κB) and DNA Damage Response (DDR) pathways, which are critical mechanisms that cancer cells use to survive and proliferate.
Beyond its direct anti-tumor effects, elraglusib may also enhance the body's natural immune response against cancer. The drug candidate is designed to mediate anti-tumor immunity through the regulation of multiple immune checkpoints and immune cell function, potentially offering a dual mechanism of action that combines direct tumor targeting with immune system activation.
Financial Structure and Funding Allocation
The public offering was managed by Lucid Capital Markets as the sole book-running manager, with Titan Partners Group, a division of American Capital Partners, serving as financial advisor. Legal representation was provided by Greenberg Traurig, LLP for Actuate and Lowenstein Sandler LLP for the underwriter.
The company expects to receive net proceeds of approximately $15.62 million after accounting for underwriting discounts and commissions. These funds will be allocated toward working capital and general corporate purposes as Actuate continues to advance its clinical development programs.
Clinical Development Focus
As a clinical-stage biopharmaceutical company, Actuate is specifically focused on developing therapies for cancers that have proven particularly challenging to treat with existing therapeutic approaches. The company's strategy centers on the inhibition of GSK-3β, a protein kinase that plays crucial roles in multiple cellular processes including cell survival, proliferation, and immune function.
The successful completion of this funding round provides Actuate with the financial resources needed to continue advancing elraglusib through clinical development, potentially bringing this novel therapeutic approach closer to patients with limited treatment options.
