Moleculin Biotech Inc (NASDAQ:MBRX) saw its stock tumble 34.3% in premarket trading Thursday after announcing agreements with certain warrant holders to immediately exercise existing warrants.
Under the arrangement, holders will exercise warrants covering up to 2,122,652 shares of common stock at $3.90 per share, generating gross proceeds of roughly $8.3 million for the company. In return, Moleculin will issue new unregistered warrants to purchase up to 6,367,956 additional shares.
The newly issued warrants will carry an exercise price equal to the lower of $3.90 per share or the lowest volume-weighted average price recorded over the next five trading days. The structure could result in further dilution for current shareholders. These warrants will become exercisable following shareholder approval and will remain valid for five years.
Moleculin said it plans to allocate the net proceeds toward working capital and general corporate needs. The deal is expected to close on or about February 20, 2026, subject to customary closing conditions.
Roth Capital Partners is serving as financial advisor for the transaction. The company has also committed to filing a registration statement with the SEC to allow for the resale of shares that may be issued upon exercise of the new warrants.
Moleculin is advancing its lead candidate Annamycin in a Phase 3 study known as MIRACLE, which is evaluating the drug in combination with cytarabine for patients with relapsed or refractory acute myeloid leukemia (AML). In addition, the company continues to develop other therapies aimed at difficult-to-treat cancers and viral diseases.