Full Press Release Details
Moleculin Biotech, Inc. Reports Financial
Results for the First Quarter Ended March 31, 2016
Successful IPO Listing on Nasdaq Provides
Funding for Commencement of Phase II Clinical Trial for Annamycin, for the treatment of relapsed or refractory AML
NEW YORK and HOUSTON - June 16, 2016
- Moleculin Biotech, Inc., (NASDAQ: MBRX) ("Moleculin" or the "Company"), a preclinical and clinical-stage
pharmaceutical company focused on the development of anti-cancer drug candidates, some of which are based on license agreements
with The University of Texas System on behalf of the M.D. Anderson Cancer Center ("MD Anderson"), today announced its
financial and operating results for the first quarter ended March 31, 2016.
During the first quarter, key activities
Planned activities and milestones for the
remainder of 2016 include:
Walter Klemp, Chairman of Moleculin commented:
"We are very pleased that our planning and activities in the first quarter have resulted in the successful initial public
offering of our Company on May 31st, allowing us to raise the necessary funds to pursue our target therapeutic development objectives
for liposomal Annamycin for relapsed and refractory adult AML, in addition to two other drug development projects, WP1066 and WP1122.
We are excited about our prospects ahead, and believe we have sufficient funds to support our activities through commencement of
our planned Phase II registration trial for Annamycin."
Financial Results for the First Quarter
Ended March 31, 2016
Research and development expense was $15,000
for the three months ended March 31, 2016 and represents accrued license fees.
General and administrative expense was
$305,571 for the three months ended March 31, 2016. The expense mainly included professional fees to our consultants, attorneys
and accountants for services related to our initial public offering and related filing fees and the compensation related to our
Chief Financial Officer.
Interest expense included expense accrued
on our convertible promissory notes issued in 2015 and 2016 bearing interest at the rate of 8% per annum.
The Company's operating loss for
the three months ended March 31, 2016 amounted to $332,241.
As of March 31, 2016, the Company had approximately
$260,000 in cash. Subsequent to March 31, 2016 and through May 2, 2016, the Company sold 105,463 common shares for $316,389. On
May 31, 2016, the Company completed its initial public offering, pursuant to which 1,540,026 shares of common stock at $6.00 per
share were sold for net proceeds of approximately $8,459,493, after deducting underwriting discounts and commissions and offering
Net cash used in operating activities was
$289,927 for the three months ended March 31, 2016 and mainly included payments made to our consultants, attorneys and accountants
for services related to our initial public offering and related filing fees and the compensation related to our Chief Financial
Net cash used in investing activities was
$30,000 for the three months ended March 31, 2016 and represents amounts loaned to Moleculin, LLC.
cash provided by financing activities was $551,499 for the three months ended March 31, 2016. We received $165,000 from issuance
of convertible notes and $386,499 from issuance of restricted common stock at $3 per share.
About Moleculin Biotech, Inc.
Moleculin Biotech, Inc. is a preclinical
and clinical-stage pharmaceutical company focused on the development of anti-cancer drug candidates, some of which are based on
discoveries made at M.D. Anderson Cancer Center. Our lead product candidate is Annamycin, a Phase II clinical stage anthracycline
for the treatment of relapsed or refractory acute myeloid leukemia, more commonly referred to as AML. We also have two pre-clinical
small molecule portfolios, one of which is focused on the modulation of hard-to-target tumor cell signaling mechanisms and the
recruitment of the patient's own immune system. The other portfolio targets the metabolism of tumors.
For more information about the offering,
please visit http://www.moleculin.com
Forward-Looking Statements
Some of the statements in this release
are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements
in this press release include, without limitation, applying for Orphan Drug status and preparing to submit for Investigational
New Drug status and Special Protocol Assessment directed toward a pivotal further Phase IIb clinical trial for liposomal Annamycin;
strengthening the Company's license and IP portfolio; and developing our pipeline of assets, including the Company's
other two molecular portfolios. These statements relate to future events, future expectations, plans and prospects. Although Moleculin
Biotech believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations
may prove to have been materially different from the results expressed or implied by such forward-looking statements. Moleculin
Biotech has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,''
''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately''
or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements
are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under the
heading "Risk Factors" in our Registration Statement on Form S-1 originally filed with the Securities and Exchange Commission
on February 1, 2016, as amended (Registration No. 333-209323). Any forward-looking statements contained in this release speak
only as of its date. We undertake no obligation to update any forward-looking statements contained in this release to reflect events
or circumstances occurring after its date or to reflect the occurrence of unanticipated events.
Walter Klemp, Chairman
Moleculin Biotech Inc.
Chief Operating Officer
Chief Communications Officer
| Moleculin Biotech, Inc. |
| Balance Sheets |
| (Unaudited) |
| March 31, 2016 | December 31, 2015 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 259,663 | $ | 28,091 | ||||
| Note receivable - Moleculin, LLC | 30,000 | - | ||||||
| Total Assets | $ | 289,663 | $ | 28,091 | ||||
| Liabilities and Stockholders' Deficit | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 363,003 | $ | 322,790 | ||||
| Convertible notes payable | 615,000 | 450,000 | ||||||
| Total Liabilities | 978,003 | 772,790 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Deficit: | ||||||||
| Common stock, $0.001 par value; 20,000,000 authorized, 6,789,833 and 6,661,000 shares issued and outstanding, respectively | 6,790 | 6,661 | ||||||
| Subscription receivable | (3,000 | ) | (3,000 | ) | ||||
| Additional paid-in capital | 388,471 | - | ||||||
| Accumulated deficit | (1,080,601 | ) | (748,360 | ) | ||||
| Total Stockholders' Deficit | (688,340 | ) | (744,699 | ) | ||||
| Total Liabilities and Stockholders' Deficit | $ | 289,663 | $ | 28,091 |
| Moleculin Biotech, Inc. |
| Statement of Operations (Unaudited) |
| For the Three Months Ended March 31, 2016 | ||||
| Revenue | $ | - | ||
| Operating expenses: | ||||
| Research and development | 15,000 | |||
| General and administrative | 305,571 | |||
| Total operating expenses | 320,571 | |||
| Loss from operations | (320,571 | ) | ||
| Other expense: | ||||
| Interest expense | (11,670 | ) | ||
| Net loss | $ | (332,241 | ) | |
| Net loss per common share - basic and diluted | $ | (0.05 | ) | |
| Weighted average common shares outstanding - basic and diluted | 6,717,767 |
| Moleculin Biotech, Inc. |
| Statements of Cash Flows |
| (Unaudited) |
| For the Three | ||||
| Months Ended | ||||
| March 31, | ||||
| 2016 | ||||
| Cash Flows From Operating Activities: | ||||
| Net loss | $ | (332,241 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||
| Stock-based compensation | 2,101 | |||
| Changes in operating assets and liabilities: | ||||
| Accounts payable and accrued liabilities | 40,213 | |||
| Net Cash Used In Operating Activities | (289,927 | ) | ||
| Cash Flows From Investing Activities: | ||||
| Investment in note receivable - Moleculin, LLC | (30,000 | ) | ||
| Net Cash Used In Investing Activities | (30,000 | ) | ||
| Cash Flows From Financing Activities: | ||||
| Proceeds from stock issuance | 386,499 | |||
| Proceeds from convertible notes payable | 165,000 | |||
| Net Cash Provided By Financing Activities | 551,499 | |||
| Net change in cash and cash equivalents | 231,572 | |||
| Cash and cash equivalents, at beginning of period | 28,091 | |||
| Cash and cash equivalents, at end of period | $ | 259,663 | ||
| Supplemental disclosures of cash flow information: | ||||
| Cash paid for interest | $ | - | ||
| Cash paid for income taxes | $ | - |