Sharp Therapeutics completes $1.55M convertible note offering

Sharp Therapeutics Corp. (TSXV: SHRX) (OTCQB: SHRXF) completed its convertible note offering, raising $1.55 million across five tranches, according to a company statement.

The final tranche closed with the issuance of 450 notes for $450,000 in gross proceeds. Each note carries a principal amount of $1,000 and bears 6% annual interest. The notes can be converted to common shares at $2.00 per share within 12 months of the closing date.

STX Partners, LLC, an insider of the company, purchased 200 notes worth $200,000 in the final tranche. The company stated this related-party transaction falls within regulatory exemptions as it represents less than 25% of Sharp's market capitalization.

Sharp also entered a letter agreement with STX Partners committing to purchase at least 2 million common shares at $2.50 per share, representing approximately $5 million in gross proceeds. The agreement is contingent on Sharp raising at least $10 million from other investors and closing by September 15, 2026.

The Pittsburgh-based biotechnology company reported spending 80% more on research and development in the fourth quarter of 2025 compared to the same period in 2024. Chief Executive Officer Scott Sneddon stated the company aims to enter Phase I clinical trials in 2027.

Sharp announced it will adopt semi-annual financial reporting under a regulatory pilot program, eliminating quarterly reports for the first and third quarters while maintaining annual audited statements and six-month interim reports.

The company develops small-molecule therapeutics for genetic diseases and is currently in pre-clinical stages with programs targeting GBA1, Niemann Pick C, and Progranulin conditions.

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