|
Delaware
|
| |
2834
|
| |
81-1065054
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification No.) |
|
|
Michael Bison
Finnbarr Murphy Goodwin Procter LLP 100 Northern Avenue Boston, MA 02210 (617) 570-1000 |
| |
Thomas A. Fitzgerald
Chief Financial Officer TransCode Therapeutics, Inc. 6 Liberty Square, #2382 Boston, MA 02109 (857) 837-3099 |
| |
Stephen Older
Rakesh Gopalan David S. Wolpa McGuireWoods LLP 1251 Avenue of the Americas, 20th Fl. New York, NY 10020 (212) 548-2122 |
|
| Large accelerated filer | | | ☐ | | |
Accelerated filer
|
| | ☐ | |
|
Non-accelerated filer
|
| | ☒ | | |
Smaller reporting company
|
| | ☒ | |
| | | | | | |
Emerging growth company
|
| | ☒ | |
| PRELIMINARY PROSPECTUS | | |
SUBJECT TO COMPLETION
|
| |
DATED SEPTEMBER 22, 2023
|
|
| | |
Per Share
|
| |
Per Pre-Funded
Warrant |
| |
Total
|
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discounts and commissions(1)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds to us, before expenses
|
| | | $ | | | | | $ | | | | | $ | | | |
| | | | | i | | | |
| | | | | ii | | | |
| | | | | iii | | | |
| | | | | 1 | | | |
| | | | | 16 | | | |
| | | | | 19 | | | |
| | | | | 21 | | | |
| | | | | 31 | | | |
| | | | | 33 | | | |
| | | | | 34 | | | |
| | | | | 35 | | | |
| CAPITALIZATION | | | | | 36 | | |
| | | | | 38 | | | |
| | | | | 40 | | | |
| | | | | 46 | | | |
| | | | | 52 | | | |
| | | | | 58 | | | |
| | | | | 58 | | |
| | |
Six Months Ended June 30,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2023
|
| |
2022
|
| |
2022
|
| |
2021
|
| ||||||||||||
| | |
Unaudited
|
| | | | | | | | | | | | | |||||||||
Statement of Operations Data | | | | | | ||||||||||||||||||||
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | $ | 5,557,260 | | | | | $ | 4,501,604 | | | | | $ | 10,232,366 | | | | | $ | 2,753,966 | | |
General and administrative
|
| | | | 4,474,688 | | | | | | 3,683,191 | | | | | | 8,433,448 | | | | | | 3,397,169 | | |
Total operating expenses
|
| | | | 10,031,948 | | | | | | 8,184,795 | | | | | | 18,665,814 | | | | | | 6,151,135 | | |
Operating loss
|
| | | | (10,031,948) | | | | | | (8,184,795) | | | | | | (18,665,814) | | | | | | (6,151,135) | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of derivative liabilities
|
| | | | — | | | | | | — | | | | | | — | | | | | | (867,000) | | |
Change in fair value of warranty liability
|
| | | | — | | | | | | — | | | | | | — | | | | | | (6,109) | | |
Grant income
|
| | | | 868,345 | | | | | | 41,720 | | | | | | 1,080,436 | | | | | | 278,333 | | |
Loss on sale of equipment
|
| | | | — | | | | | | — | | | | | | — | | | | | | (3,082) | | |
Interest expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | (95,070) | | |
Interest income
|
| | | | 5,017 | | | | | | 1,773 | | | | | | 20,410 | | | | | | 664 | | |
Total other income (expense)
|
| | | | 873,362 | | | | | | 43,493 | | | | | | 1,100,846 | | | | | | (692,264) | | |
Loss before income taxes
|
| | | | (9,158,586) | | | | | | (8,141,302) | | | | | | (17,564,968) | | | | | | (6,843,399) | | |
Income tax expense (benefit)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss
|
| | | $ | (9,158,586) | | | | | $ | (8,141,302) | | | | | $ | (17,564,968) | | | | | $ | (6,843,399) | | |
Basic and diluted loss per common share(1)
|
| | | $ | (8.97) | | | | | $ | (12.55) | | | | | $ | (27.07) | | | | | $ | (16.24) | | |
Weighted average number of common shares outstanding, basic and diluted(1)
|
| | | | 1,020,644 | | | | | | 648,862 | | | | | | 648,861 | | | | | | 421,294 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
December 31,
|
| |||||||||
| | |
June 30, 2023
|
| |
2022
|
| |
2021
|
| |||||||||
| | |
Unaudited
|
| | | | | | | | | | | | | |||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | |
Cash | | | | $ | 3,572,475 | | | | | $ | 4,968,418 | | | | | $ | 20,825,860 | | |
Current assets
|
| | | | 4,892,937 | | | | | | 7,379,405 | | | | | | 22,732,175 | | |
Total assets
|
| | | | 5,881,545 | | | | | | 7,587,986 | | | | | | 22,938,443 | | |
Current liabilities
|
| | | | 3,523,430 | | | | | | 4,347,290 | | | | | | 2,534,097 | | |
Total liabilities
|
| | | | 3,789,082 | | | | | | 4,347,290 | | | | | | 2,534,097 | | |
Total stockholders’ equity
|
| | | | 2,092,463 | | | | | | 3,240,696 | | | | | | 20,404,346 | | |
| | | | | | | | | | | | | | | | | | | |
| | |
June 30, 2023
|
| |||||||||
| | |
(unaudited)
|
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
Cash
|
| | | $ | 3,572,475 | | | | | $ | 10,397,474 | | |
Stockholders’ equity | | | | | | | | | | | | | |
Preferred stock – $0.0001 par value; 10,000,000 shares authorized actual and as adjusted; no shares issued or outstanding actual or as adjusted
|
| | | | — | | | | | | — | | |
Common stock – $0.0001 par value; 290,000,000 shares authorized;
1,950,674 shares issued and outstanding actual; 13,430,082 shares issued and outstanding as adjusted |
| | | $ | 195 | | | | | $ | 1,343 | | |
Additional paid-in capital
|
| | | | 39,121,104 | | | | | | 45,944,955 | | |
Accumulated deficit
|
| | | | (37,028,836) | | | | | | (37,028,836) | | |
Total stockholders’ equity
|
| | | $ | 2,092,463 | | | | | $ | 8,917,462 | | |
Total capitalization
|
| | | $ | 2,092,463 | | | | | $ | 8,917,462 | | |
| | | | | | | | | | | | | |
|
Assumed public offering price per share
|
| | | | | | | | | $ | 0.6969 | | |
|
Net tangible book value per share at June 30, 2023
|
| | | $ | 1.07 | | | | | | | | |
|
Decrease in book value per share attributable to new investors
|
| | | $ | 0.41 | | | | | | | | |
|
As adjusted net tangible book value per share after this offering
|
| | | | | | | | | $ | 0.66 | | |
|
Dilution per share to new investors
|
| | | | | | | | | $ | 0.04 | | |
| | | | | | | | | | | | | | |
Description
|
| |
Number
of Shares |
| |
Exercise Price
Per Share |
| ||||||
IPO Underwriter Warrants
|
| | | | 15,625 | | | | | $ | 100.00 | | |
February 2023 Placement Agent Warrants
|
| | | | 9,962 | | | | | | 13.18 | | |
Consultant Warrants
|
| | | | 6,250 | | | | | | 10.00 | | |
Series A-1 Warrants
|
| | | | 2,000,000 | | | | | | 3.25 | | |
Series A-2 Warrants
|
| | | | 2,000,000 | | | | | | 3.25 | | |
June 2023 Placement Agent Warrants
|
| | | | 140,000 | | | | | | 4.38 | | |
June 2023 Pre-funded Warrants
|
| | | | 950,000 | | | | | | 0.01 | | |
| | | | | | | | | | | | | |
Underwriter
|
| |
Number of
Shares |
| |
Number of
Pre-Funded Warrants |
|
ThinkEquity
|
| | | | | | |
Total
|
| | | | | | |
| | | | | | | |
| | |
Per Share
|
| |
Per Pre-Funded
Warrant |
| |
With No
Over-Allotment |
| |
With Full
Over-Allotment |
| ||||||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Underwriting discount (7.5%)
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Proceeds, before expenses, to us
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Non-accountable expense allowance (1%)
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | | |||
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Amount paid or
to be paid |
| |||
SEC registration fee
|
| | | $ | 1,347 | | |
FINRA filing fee
|
| | | | 2,333 | | |
Printing and mailing
|
| | | | 40,000 | | |
Legal fees and expenses
|
| | | | 250,000 | | |
Accounting fees and expenses
|
| | | | 30,000 | | |
Miscellaneous
|
| | | | 171,320 | | |
Total
|
| | | $ | 495,000 | | |
| | | | | | | |
| | | |||
|
Exhibit
number |
| |
Description
|
|
| 1.1* | | | | |
| 3.1 | | | | |
| 3.2 | | | | |
| 3.3 | | | | |
| 4.1 | | | | |
| 4.2** | | | | |
| 4.3** | | | | |
| 4.4 | | | | |
| 4.5 | | | | |
| 4.6 | | | | |
| 4.7 | | | | |
| 4.8 | | | | |
| 5.1* | | | | |
| 10.1# | | | | |
| 10.2# | | | |
| | | |||
|
Exhibit
number |
| |
Description
|
|
| 10.3# | | | | |
| 10.4# | | | | |
| 10.5# | | | | |
| 10.6 | | | | |
| 10.7# | | | | |
| 10.8# | | | | |
| 10.9# | | | | |
| 10.10# | | | | |
| 10.11# | | | | |
| 10.12# | | | | |
| 10.13 | | | | |
| 10.14 | | | | |
| 10.15 | | | | |
| 21.1** | | | List of Subsidiaries of the Registrant. | |
| 23.1* | | | Consent of Withum Smith+Brown, PC, independent registered public accounting firm. | |
| 23.2* | | | Consent of Goodwin Procter LLP (included in Exhibit 5.1). | |
| 24.1** | | | Power of Attorney (included on signature page). | |
| 107* | | | Filing Fee Table. | |
| | | ||||||
|
NAME
|
| |
TITLE
|
| |
DATE
|
|
|
/s/ Robert Michael Dudley
Robert Michael Dudley
|
| |
Director and Chief Executive Officer
(Principal Executive Officer) |
| |
September 22, 2023
|
|
|
/s/ Thomas A. Fitzgerald
Thomas A. Fitzgerald, MBA
|
| |
Director and Chief Financial Officer (Principal Financial and Accounting Officer)
|
| |
September 22, 2023
|
|
|
*
Philippe P. Calais, PhD
|
| |
Director
|
| |
September 22, 2023
|
|
|
*
Erik Manting, PhD
|
| |
Director
|
| |
September 22, 2023
|
|
|
*
Magda Marquet, PhD
|
| |
Director
|
| |
September 22, 2023
|
|
|
By:
/s/ Robert Michael Dudley
Robert Michael Dudley
Attorney-in-Fact |
| | | | | | |
| | | | | | | | |