TransCode Therapeutics Secures Up to $20M Financing Agreement

TransCode Therapeutics has entered into an agreement with an institutional healthcare investor for financing of up to $20M. The arrangement comprises pre-paid advances of up to $6M and a three-year Standby Equity Purchase Agreement , or SEPA, providing the company the right to sell up to $14M of its common stock to the investor, subject to certain conditions. TTX-MC138 is a first-in-class therapeutic candidate designed to inhibit microRNA-10b, or miR-10b, a microRNA widely believed to be critical to the emergence and progression of many metastatic cancers. TransCode's Phase 0 clinical trial produced evidence of delivery of a radiolabeled version of TTX-MC138 to metastatic lesions and pharmacodynamic activity, even at a microdose of the drug candidate, suggesting a broad therapeutic window for TTX-MC138. In the company's Phase 1a clinical trial, TTX-MC138 met its safety endpoint and was well tolerated by patients. A Phase 2a clinical trial with TTX-MC138 is expected to begin in Q2. The pre-paid advance will be evidenced by convertible promissory notes priced at 95% of face value. TransCode will issue a $1M principal amount note concurrently with its Annual Report for 2025, and, subject to certain closing conditions, will issue an additional $5M principal amount note upon shareholder approval of the transaction. The advance will accrue interest at a simple annual rate of 5% and may be converted into TransCode's common stock.