Full Press Release Details
TransCode Therapeutics Reports Business Progress
and Second Quarter 2021 Financial Results
Completed initial public offering of common
stock, raising $28.8 million in gross proceeds
Awarded $2.3 million in funding from NIH to
support clinical evaluation of TTX-MC138
On track to submit eIND application for TTX-MC138
Boston, MA, Aug 23, 2021 - TransCode Therapeutics, Inc. (Nasdaq:
RNAZ), an emerging RNA oncology company, created on the belief that cancer can be defeated through the intelligent design and effective
delivery of RNA therapeutics, today reported recent business progress and second quarter 2021 financial results.
"2021 has so far been foundational for TransCode, highlighted
by our recent initial public offering and listing on Nasdaq. With resources from the IPO and additional support from the NIH, we are
driving progress across our organization, including key staff additions who bring valued expertise to our team and advancement of our
preclinical work," said Michael Dudley, co-founder, president and CEO of TransCode Therapeutics. "Looking forward, we are
positioning to move our pipeline into clinical development, as we seek to demonstrate the power and versatility of our TTX platform in
solving the challenges of RNA delivery in oncology. We remain on track to submit an exploratory Investigational New Drug Application
(eIND) in the first quarter of 2022 to test our lead therapeutic candidate, TTX-MC138, in a Phase 0 study in metastatic solid tumors.
We believe this study has the potential to establish proof-of-mechanism for our platform, upon which we hope to build a broad and diverse
pipeline of therapeutics and diagnostics with the potential to reach previously undruggable genetic targets."
2021 and Recent Highlights
Planned Upcoming Milestones
TransCode continues to advance its portfolio and has set the following
Second Quarter Financial Highlights
TransCode expects that its cash and cash equivalents as of June 30,
2021, together with net proceeds from its initial public offering and the SBIR award, are sufficient to fund planned operations through
About TransCode Therapeutics
TransCode is an emerging RNA oncology company created on the
belief that cancer can be defeated through the intelligent design and effective delivery of RNA therapeutics. The Company has
created a platform of drug candidates designed to target a variety of tumor types with the objective of significantly improving
patient outcomes. The Company's lead therapeutic candidate, TTX-MC138, is focused on treating metastatic cancer, which causes
approximately 90% of all cancer deaths representing over nine million deaths per year worldwide. The Company believes that TTX-MC138
has the potential to produce regression without recurrence in a range of cancers, including breast, pancreatic, ovarian and colon
cancer, glioblastomas and others. The Company's other drug candidates, TTX-siPDL1 and TTX-siLIN28b, focus on the treatment of
tumors by targeting PD-L1 and Lin28b, respectively. The Company is also developing diagnostic products related to its planned
therapeutics business.
Forward-Looking Statements
This release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements concerning the timing and
outcome of expected regulatory filings, including the filing of an eIND for the planned first-in-human study of TTX-MC138, and statements
concerning the timing and outcome of this study, including whether this study will demonstrate proof-of-concept, and statements concerning
TransCode's development programs and TTX technology platform generally. Any forward-looking statements in this press release are
based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause
actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to: the risk associated with drug discovery and development; the risk that the results of our
planned clinical trials will not be consistent with our pre-clinical studies or expectations; risks associated with the timing and outcome
of TransCode s planned regulatory submissions; risks associated with TransCode's planned clinical trials for its product candidates;
risks associated with obtaining, maintaining and protecting intellectual property; risks associated with TransCode's ability to
enforce its patents against infringers and defend its patent portfolio against challenges from third parties; the risk of competition
from other companies developing products for similar uses; risks associated with TransCode's financial condition and its need to
obtain additional funding to support its business activities, including TransCode's ability to continue as a going concern; risks
associated with TransCode's dependence on third parties; and risks associated with the COVID-19 coronavirus. For a discussion of
these and other risks and uncertainties, and other important factors, any of which could cause TransCode's actual results to differ
from those contained in or implied by the forward-looking statements, see the section entitled "Risk Factors" in TransCode's
Quarterly Report on Form 10-Q for the period ended Juine 30, 2021, as well as discussions of potential risks, uncertainties and other
important factors in TransCode's subsequent filings with the Securities and Exchange Commission. All information in this press release
is as of the date of the release; TransCode undertakes no duty to update this information unless required by law.
| June 30, 2021 | December 31, 2020 | |||||||
| Cash and cash equivalents | $ | 79,567 | $ | 828,016 | ||||
| Prepaid expenses and other current assets | 460,652 | 3,199 | ||||||
| Deferred offering costs | 890,452 | 224,153 | ||||||
| Total assets | 1,522,265 | 1,055,368 | ||||||
| Accounts payable and accrued expenses | 1,216,501 | 369,177 | ||||||
| Deferred grant income | 251,810 | -- | ||||||
| Convertible promissory notes, net of debt issuance costs and debt discount | 2,125,813 | 2,086,675 | ||||||
| Accrued interest - convertible promissory notes | 247,285 | 191,687 | ||||||
| Derivative liabilities | 2,618,000 | 1,751,000 | ||||||
| Total stockholders' equity (deficit) | (5,036,081 | ) | (3,408,232 | ) |
Statement of Operations
| Three Months Ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| Operating expenses: | ||||||||
| Research and development | $ | 211,752 | $ | 75,000 | ||||
| General and administrative | 143,776 | 16,605 | ||||||
| Total operating expenses | 355,528 | 91,605 | ||||||
| Loss from operations | (355,528 | ) | (91,605 | ) | ||||
| Other income (expenses), net | 3,126,432 | (35,593 | ) | |||||
| Income (loss) before income taxes | 2,770,904 | (127,198 | ) | |||||
| Net income (loss) | $ | 2,770,904 | $ | (127,198 | ) | |||
| Basic earnings (loss) per share | $ | 0.60 | $ | (0.03 | ) | |||
| Diluted earnings (loss) per share | $ | 0.51 | $ | (0.03 | ) |
Stern Investor Relations