XORTX closes $5 million public offering of shares and warrants

XORTX Therapeutics Inc. (NASDAQ: XRTX) completed a public offering that raised $5 million in gross proceeds through the sale of 2,659,574 common shares and common share equivalents at $1.88 per share.

The pharmaceutical company issued 183,577 common shares and 2,475,997 pre-funded warrants to purchasers. Each pre-funded warrant allows the holder to acquire one common share at an exercise price of $0.0001 per share.

XORTX plans to use the net proceeds for working capital and general corporate purposes, including investor relations activities. The company paid E.F. Hutton & Co. a cash commission of $200,000, representing 4% of the gross proceeds, for serving as exclusive placement agent.

The offering was conducted under a registration statement on Form F-1 that became effective with the Securities and Exchange Commission on May 13. Final approval from the TSX Venture Exchange remains pending.

The company allocated $2.5 million of the proceeds to IR Agency LLC for marketing and advertising services to communicate information about XORTX to the financial community. IR Agency LLC operates from Newark, New Jersey, and is prohibited from acquiring interest in XORTX.

XORTX develops treatments for gout and progressive kidney disease, with three clinically advanced products in development. The company focuses on targeting aberrant purine metabolism and xanthine oxidase to reduce uric acid production.

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