MARLBOROUGH, Mass. - Phio Pharmaceuticals Corp. (NASDAQ:PHIO), a biotech firm focused on developing immune-based cancer therapies, has announced an agreement with TRITON Funds for the purchase of approximately 18.8% of its common shares. The transaction is expected to yield gross proceeds of up to $621,000 for Phio.
The investment by TRITON, known for backing microcap companies with innovative technologies, aligns with its strategy of supporting scientific innovation paired with strong management. Axel Olson of TRITON Funds expressed confidence in Phio's INTASYL™ siRNA gene silencing technology, which aims to enhance the effectiveness of immune cells in destroying tumor cells.
Phio's President and CEO, Robert Bitterman, welcomed the investment, stating that TRITON's interest in their INTASYL program acknowledges its potential as an alternative treatment for solid tumors. The securities involved in this agreement were offered under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission on May 13, 2021, and declared effective on May 21, 2021.
The INTASYL platform is the only self-delivering RNAi technology focused on immuno-oncology, designed to target specific proteins that hinder the body's cancer-fighting capabilities without needing specialized delivery systems. This investment marks a significant milestone for Phio as it continues to advance its clinical-stage biotechnology endeavors.
The funding from TRITON Funds is subject to the terms outlined in the purchase agreement, and additional information regarding the offering will be detailed in a final prospectus supplement filed with the SEC.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation to buy the securities in any jurisdiction. The information presented here is factual and does not imply endorsement of claims by Phio Pharmaceuticals or TRITON Funds.
InvestingPro Insights
As Phio Pharmaceuticals Corp. (NASDAQ:PHIO) embraces the new investment from TRITON Funds, several key metrics and insights from InvestingPro paint a detailed financial picture of the company. Phio's market capitalization stands at a modest $3.36 million, reflecting its microcap status in the biotech sector. Despite challenging market conditions, the company has shown resilience with a 12.85% return over the last month as of Q1 2024, indicating a recent uptick in investor confidence.
InvestingPro Tips highlight that Phio holds more cash than debt on its balance sheet, which could provide a cushion against financial headwinds as they continue to develop their INTASYL™ siRNA gene silencing technology. Furthermore, analysts predict the company will be profitable this year, suggesting that the current investment could be well-timed to capitalize on Phio's growth trajectory.
While the company's P/E ratio is negative at -0.25, indicating that it is not currently profitable, the liquid assets of the company exceed its short-term obligations, which could be a sign of financial stability. It is also noteworthy that Phio does not pay a dividend, a common characteristic of growth-focused biotech firms reinvesting earnings into research and development.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, including insights on the company's cash burn rate and gross profit margins. To explore these further, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a wealth of data and expert analysis to inform your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.