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Rakovina Therapeutics Secures $4M Strategic Financing and Announces 10-for-1 Share Consolidation to Accelerate Growth
Rakovina Therapeutics secured $4 million in strategic financing through private placements. The company plans a 10-for-1 share consolidation to streamline its capital structure.
Rakovina Therapeutics Secures $4 Million Strategic Financing and Plans 10-for-1 Share Consolidation
Vancouver, BC – May 15, 2025: Rakovina Therapeutics Inc. (TSX-V: RKV) (FSE: 7JO), a biotech company focused on AI-driven cancer drug discovery, has announced a strategic financing round totaling approximately $4 million. This round consists of two concurrent private placements: convertible debenture units raising about $1.1 million, and equity units generating roughly $2.9 million.
The financing is anchored by $3 million in investor interest, including $1.1 million in debenture units and $1.9 million in equity units. Additionally, Rakovina will seek approval from the TSX Venture Exchange (TSXV) to execute a 10-for-1 share consolidation aimed at streamlining its capital structure and enhancing its positioning for growth in U.S. capital markets.
Details of the Offering
Rakovina will issue approximately 58 million equity units priced at $0.05 each. Each unit includes one pre-consolidation share and one warrant to purchase an additional pre-consolidation share at $0.10 within 24 months. Post-consolidation, the warrant exercise price adjusts to $1.00 per share. Warrants will be subject to accelerated expiry if the common share price reaches $0.25 or higher for five consecutive trading days.
The company will also issue about 22 debenture units at $50,000 each to select investors. Each includes a $50,000 unsecured convertible debenture and 100,000 warrants exercisable at $0.15 pre-consolidation share price (or $1.50 post-consolidation) for 24 months. The debentures mature in 36 months, accrue 12% annual interest, and may be converted into common shares at $0.10 pre-consolidation (or $1.00 post-consolidation). Rakovina may redeem the debentures in cash anytime after 12 months without premium.
Subscriptions by insiders may occur and are treated as related party transactions but are exempt from formal valuation and shareholder approval requirements under applicable TSXV rules due to size limits relative to market capitalization.
Share Consolidation Plan
Pending TSXV approval, Rakovina will consolidate its outstanding shares on a 10-to-1 basis. This means every 10 pre-consolidation shares will convert to one post-consolidation share. Currently, 140 million shares will reduce to approximately 14 million. After the offering and consolidation, total shares outstanding are expected to be about 19.8 million.
No fractional shares will be issued; fractions less than half a share will be rounded down, and fractions equal or greater than half will be rounded up. The company will retain its existing name and ticker symbol. Prices and share numbers for outstanding convertible securities will adjust proportionally following consolidation. Further details including effective dates and new identifiers will be announced later.
Strategic Outlook
Jeffrey Bacha, Executive Chairman, emphasized the importance of this financing and consolidation for strengthening Rakovina’s market position and accelerating its AI-based drug discovery capabilities. The company’s proprietary DNA Damage Response (DDR) platform targets tumors with impaired DNA repair, common in treatment-resistant cancers. This capital raise and structural adjustment aim to enhance Rakovina’s ability to form valuable partnerships and advance its pipeline.
About Rakovina Therapeutics Inc.
Rakovina Therapeutics specializes in developing novel cancer therapies powered by proprietary AI platforms. Their focus is on DNA-damage response inhibitors, aiming to progress promising candidates into clinical trials in collaboration with pharmaceutical partners. For more information, visit www.rakovinatherapeutics.com.
Forward-Looking Statements
This release contains forward-looking statements concerning Rakovina’s business plans and expected outcomes related to its drug discovery platform and financing activities. Actual results may differ due to risks including industry conditions, regulatory factors, market fluctuations, and competition. The company disclaims any obligation to update such statements except as required by law. For a detailed discussion of risks, refer to the company’s filings on SEDAR.
Contact Information
- Michelle Seltenrich, BSc MBA
- Director, Corporate Development
- Email: IR@rakovinatherapeutics.com
- Phone: 778-773-543