Shares of Intensity Therapeutics Inc. (NASDAQ:INTS) tumbled nearly 30% on Friday after the late-stage biotech firm announced a $4 million registered direct offering of common stock at $0.80 per share, marking a steep discount to its prior closing price.
The company said it has entered into a securities purchase agreement with a new long-term institutional investor for the sale of 5 million shares. The offering price represents a sharp markdown from Thursday’s closing price of $1.32, when Intensity’s stock had soared 395% in a single trading session.
Intensity Therapeutics said the net proceeds will be used to advance ongoing clinical trials, as well as for working capital and general corporate purposes. The company — which develops intratumoral cancer therapies based on its proprietary non-covalent conjugation platform — expects the new funding to extend its cash runway through the first quarter of 2027.
A.G.P./Alliance Global Partners is serving as the sole placement agent for the transaction, which is expected to close around November 3, 2025, pending customary conditions.
The offering is being conducted under an effective shelf registration statement that was approved by the U.S. Securities and Exchange Commission on July 11, 2024, enabling Intensity to raise capital quickly as it accelerates development of its late-stage oncology pipeline.