Phase 3 clinical stage pharmaceutical company Moleculin Biotech Inc (Nasdaq:MBRX) announced on Thursday that it has entered into agreements with certain holders of its existing warrants for the immediate exercise of certain outstanding warrants to purchase up to an aggregate of 2,122,652 shares of common stock of the company at an exercise price of USD3.90 per share.

The issuance or resale of the shares of common stock issuable upon exercise of the outstanding warrants has been registered pursuant to effective registration statements. Aggregate gross proceeds from the exercise of the existing warrants is expected to total approximately USD8.3m, before deducting financial advisory fees.

In consideration for the immediate exercise of the warrants for cash, Moleculin will issue new unregistered warrants to purchase shares of common stock. The new warrants will be exercisable for an aggregate of up to 6,367,956 shares of common stock, at an exercise price equal to the lesser of USD3.90 per share or the lowest volume weighted average price of the company's common stock on any trading day during the next five trading days. They will be exercisable upon shareholder approval and for a term of five years from the date of shareholder approval.

The transaction is expected to close on or about 20 February 2026, subject to satisfaction of customary closing conditions. Moleculin said that it intends to use the net proceeds from the offering for working capital and general corporate purposes.