Fennec Pharmaceuticals completed a private offering of its common shares in Canada, pricing each share at $7.50 and targeting gross proceeds of up to $5.025 million. The non‑brokered transaction is limited to existing institutional shareholders and is scheduled to close on November 17 2025.
The company will use the net proceeds to repay and redeem portions of its convertible debt, fund working capital needs, and support general corporate purposes. By reducing debt, Fennec aims to lower interest expense and strengthen its balance sheet, creating a more resilient platform for future growth.
The timing of the offering follows a strong Q3 2025 earnings report in which Fennec posted net product sales of $12.5 million—up 79% year‑over‑year—and became the first quarter in which it reported operating profitability. However, earnings per share of ($0.02) fell short of the consensus estimate of $0.07, reflecting higher operating costs and the impact of a one‑time restructuring charge. The financing is therefore positioned to support the company’s expansion into the adolescent and young‑adult oncology market and to accelerate the commercialization of PEDMARK, its FDA‑approved ototoxicity‑reducing therapy.
Management highlighted the strategic importance of the capital raise. CEO Jeff Hackman said the company is at an “inflection point” as it delivers its strongest quarterly results, noting that the new funding will help sustain momentum in key accounts and enable broader adoption of PEDMARK across oncology networks. The proceeds will also support the company’s goal of achieving cash‑flow breakeven in the second half of 2025, a milestone that will underpin future investment in research and market expansion.
While the market’s immediate reaction to the offering is not reported, the company’s Q2 2025 earnings had previously triggered a sharp decline in investor sentiment due to an earnings miss. The Q3 results, coupled with the new financing, suggest a shift toward a more positive outlook, as the company demonstrates both revenue growth and a path to profitability. Investors will likely view the capital raise as a prudent step to balance growth initiatives with debt reduction, reinforcing Fennec’s long‑term value proposition.
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