Fennec Pharmaceuticals closes $5 million private share offering in Canada

Fennec Pharmaceuticals Inc. (NASDAQ: FENC) (TSX: FRX) completed a private offering of common shares in Canada, raising $5,025,000 in gross proceeds at $7.50 per share.

The Research Triangle Park, North Carolina-based specialty pharmaceutical company sold the shares to existing institutional shareholders through a non-brokered offering. The transaction was conducted under Canada's listed issuer financing exemption and covered all Canadian provinces except Quebec.

The shares were registered under the Securities Act of 1933 through a prospectus supplement and accompanying prospectus. Since the offering used the listed issuer financing exemption, the common shares are not subject to a hold period under Canadian securities laws.

Fennec relied on Section 602.1 of the TSX Company Manual exemption, which allows the Toronto Stock Exchange to waive certain standards for transactions involving eligible companies also listed on recognized exchanges like Nasdaq.

The company focuses on commercializing PEDMARK, a treatment designed to reduce platinum-induced hearing loss in cancer patients receiving cisplatin-based chemotherapy. PEDMARK received FDA approval in September 2022 and European Commission approval in June 2023.

In March 2024, Fennec entered a licensing agreement with Norgine Pharmaceuticals Ltd. for commercialization of the drug, marketed as PEDMARQSI in Europe, the United Kingdom, Australia and New Zealand. The product is currently available in the United Kingdom and Germany.

PEDMARK has received Orphan Drug Exclusivity in the United States, while PEDMARQSI has Pediatric Use Marketing Authorization in Europe providing eight years plus two years of data and market protection. Fennec holds patents protecting the drug until 2039 in the United States and internationally.

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