Why Kintara Therapeutics Stock Is Skyrocketing Today

Kintara Therapeutics Inc KTRA shares are trading higher by 76.8% to $0.31 Wednesday morning after the company entered into an equity purchase agreement with Lincoln Park Capital for up to $20 million.

What Happened?

Kintara Therapeutics says the company expects this commitment from LPC will provide financial flexibility and is aligned with Kintara's long-term strategy for value creation.

Kintara intends to use any net proceeds from the sale of its common stock to LPC for working capital and general corporate purposes, including development expenses for VAL-083 and REM-001.

Why it Matters

"We are excited to enter into this transaction with Lincoln Park Capital and believe that this agreement provides us an opportunity to access capital in a very efficient manner," said Robert E. Hoffman, President and Chief Executive Officer of Kintara.

"We believe that the financial flexibility provided by this agreement will further support our clinical development efforts with VAL-083 in glioblastoma and REM-001 in cutaneous metastatic breast cancer."

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According to data from Benzinga Pro, Kintara Therapeutics has a 52-week high of $1.65 and a 52-week low of $0.14.