Fennec Pharmaceuticals raises $40.25 million in public offering

Fennec Pharmaceuticals Inc. (NASDAQ: FENC) (TSX: FRX) completed an underwritten public offering of 5,366,667 common shares at $7.50 per share, generating gross proceeds of approximately $40.25 million before expenses.

The specialty pharmaceutical company said it will use net proceeds to repurchase and redeem certain debt, with remaining funds allocated to working capital and general corporate purposes. The offering included the full exercise of underwriters' option to purchase additional shares.

Piper Sandler & Co. and Craig-Hallum Capital Group LLC served as joint book-running managers for the offering. H.C. Wainwright & Co. acted as lead manager and Stephens Inc. as co-manager.

The offering was conducted under a registration statement previously filed with and declared effective by the Securities and Exchange Commission. The shares were not offered or sold in Canada, with Fennec relying on an exemption under Section 602.1 of the TSX Company Manual for eligible interlisted issuers.

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

In March 2024, the company entered an exclusive licensing agreement with Norgine Pharmaceuticals Ltd. to commercialize the drug in Europe, the United Kingdom, Australia and New Zealand. The product is currently available in the U.K. and Germany under the brand name PEDMARQSI.

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